(Corrects paragraph 1 and headline to show one-month high
instead of two-month high)
By Lewa Pardomuan
LONDON, May 22 (Reuters) - Gold dropped on Thursday as
investors booked profits after pushing up the price to its
highest level in more than a month above $930, but more gains
may be in store with oil hitting another record.
Spot gold <XAU=> fell to $926.00/927.00 an ounce from late
New York levels of $928.55/929.75, having earlier jumped to
$935.30 an ounce -- its highest level since April 18.
Oil <CLc1> roared to an all time high above $135 an ounce on
supply worries and the weakening U.S. dollar, triggering fears
of inflation and elevating gold's safe-haven appeal.
"I think the confidence is back in the market. We broke
$900. We broke $930," said Frederic Panizzutti, metals analyst
at MKS Finance.
"So definitely we see some potential for higher levels
again. The psychological (resistance) is $950, then probably
$980 and there is of course the psychological $1,000 level."
Despite the gains, gold was still more than $100 away from
record high of $1,130.80 an ounce hit on March 17 and some
analysts remained cautious.
"There are enough supply constraints and there is no dearth
of bullish outlook on crude oil from various institutions and
organisations. These one-way outlook adds fuel to the fire,
propelling gold along with it," said Pradeep Unni, analyst at
Vision Commodities in Dubai.
"Possibly, we could see $138-$141 in crude in near term, but
extreme caution should be exercised as the rally seems to have
over-extended itself and sharp reversals could be on board,
meaning could also succumb in the process."
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange lost $3.0 an ounce to $925.6
an ounce, having risen to $933 an ounce on Wednesday -- its
highest level since April 22.
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. []
Spot platinum <XPT=> fell to $2,183/2,203 an on ounce from
$2,188.50/2,208.50 ounce late in New York, having earlier hit a
two-month high at $2,216 an ounce.
Precious metals refiner Johnson Matthey <JMAT.L> said this
week that the metal, used in jewellery and auto catalysts, could
spike to a record high of $2,500 this year due to fears of a
supply deficit.
Platinum struck a record high of $2,290 on March 4 after a
power crisis in main producer South Africa disrupted mining.
Spot silver <XAG=> edged down to $17.98/18.04 an ounce from
$18.01/18.09 in late New York.
Spot palladium <XPD=> fell to $451.50/459.50 an ounce from
$454/462 an ounce.
(Editing by Christopher Johnson)
