(Updates prices)
By Miho Yoshikawa
TOKYO, May 22 (Reuters) - Gold gave up gains to slip below
$930 on Thursday, as buying lost steam in the wake of crude oil's
decline from a new historic high.
Bullion earlier rose to an intraday high of $935.30 as crude
oil topped $135 per barrel for the first time on Thursday in yet
another all-time high, spurring buying by investors seeking an
inflation hedge.
The day's peak was the highest level since April 18.
"We're seeing a shift as investors move their assets from
financial instruments to commodities," said Koji Suzuki, a senior
manager at SBI Futures Co Ltd.
Spot gold <XAU=> was at $928.30/929.50 an ounce at 0925 GMT,
compared with late New York levels of $928.55/929.75.
Suzuki said a sense of caution might be slowing gold's rise.
"In the short term, I think some investors may be wary given
the way oil has jumped," Suzuki said.
Gold's nearby resistance was seen at $935-$940.
The price of U.S. crude oil has surged more than 20 percent
since the beginning of the month on supply concerns among other
factors.
The front-month July NYMEX crude contract <CLc1> rose to a
record high of $135.04 on the Globex electronic trading platform
in Asian trade, up 1.4 percent from the New York settlement.
The dollar declined against key currencies, making it cheaper
for overseas investors to buy gold, thereby adding lustre to the
yellow metal's appeal as an investment.
The euro rose as far as $1.5802 <EUR=> on electronic trading
platform EBS, closing in on a record peak above $1.60 hit last
month. The dollar dipped to a one-week low of about 102.78 yen
<JPY=>.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange was at $928.80 an ounce
compared to $928.60, its settlement in New York.
Benchmark April gold <0#JAU:> on the Tokyo Commodity Exchange
closed up 11 yen a gram, or about 0.4 percent, at 3,101 yen.
In industry news, China, already the world's top gold
producer, could become an even bigger force with the expected
discovery of several large deposits in the next five years, a
leading explorer said on Wednesday. []
In bullish news for platinum, South Africa's state-owned
power utility Eskom warned on Thursday that it might be forced to
resume scheduled power cuts as its electricity grid was under
renewed pressure. []
Precious metals refiner Johnson Matthey <JMAT.L> said this
week that the metal, used in jewelry and auto catalysts, could
hit a record of $2,500 this year due to fears of a supply
deficit, stemming in part to South Africa's struggling power
system.
Other precious metals mostly tracked gold's movements.
Spot platinum <XPT=> inched down to $2,183/2,193 an ounce
from late New York levels of $2,187/2,207.
It hit a record high of $2,290 on March 4 after a power
crisis in main producer South Africa disrupted mining.
Spot silver <XAG=> was at $17.99/18.05 an ounce, up a touch
from $17.95/18.03 in late New York, while spot palladium <XPD=>
was at $454/459, compared with $454/462.
Precious metals prices at 0926 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 928.20 -3.15 -0.34 11.47
Spot Silver 18.04 0.10 +0.56 22.14
Spot Platinum 2185.50 -5.00 -0.23 43.78
Spot Palladium 451.50 -3.00 -0.66 22.69
TOCOM Gold 3101.00 11.00 +0.36 1.34 63724
TOCOM Platinum 7053.00 35.00 +0.50 32.10 40965
TOCOM Silver 603.70 9.10 +1.53 11.59 2286
TOCOM Palladium 1529.00 13.00 +0.86 13.18 1766
Euro/Dollar 1.5773
Dollar/Yen 103.16
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams, Spot prices in $ per ounce.
(Reporting by Miho Yoshikawa; Editing by Chris Gallagher)
