*Gold and platinum extend losses as dollar surge
* Tokyo futures hit limit down
(Updates prices, adds COMEX, TOCOM prices, table)
By Lewa Pardomuan
SINGAPORE, Aug 12 (Reuters) - Gold tumbled to its weakest
in almost eight months in volatile trade on Tuesday, losing its
safe haven appeal as investors shifted some of their money back
into the U.S. dollar and oil further retreated from record
highs.
Platinum and silver also dropped to their lowest level
since December to track gold, while thinly-traded palladium hit
its weakest since mid-November 2006. Panic selling hit Tokyo,
where platinum and gold futures sank by their daily limit down.
Gold hit an intraday high of $825.85 before falling all the
way to $801.90 an ounce, its lowest level since late December,
as the euro struck a six-month low against the dollar.
By 0240 GMT, spot gold <XAU=> was at $804.65/805.65 an
ounce, down from $819.25/820.85 an ounce late in New York on
Monday and well below an all time high of $1,030.80 hit in
March.
"Frankly speaking, the way its dropping, I think $800 will
be taken out very soon. Just look at the rise in the dollar and
plunge in the euro. Gold's decline is quite justifiable," "
said Adrian Koh, analyst at Philip Futures in Singapore.
The euro fell to a six-month low against the dollar as
mounting signs of economic difficulties in Europe, Asia and
Australia diminished prospects of higher interest rates outside
the United States, boosting demand for the dollar. []
The dollar index <.DXY>, which measures the greenback
against a basket of six currencies, hit a six-month high of
76.428. []
Oil <CLc1> was down 51 cents to $113.95 a barrel.
"Gold has broken the chart points and everybody is rushing
to sell their gold. It seems to be very bad. We are waiting for
gold to hit $800," said Ronald Leung, director of Lee Cheong
Gold Dealers in Hong Kong.
Despite a sharp drop in prices, physical demand from
jewellers was limited, he said. "It's moving too fast and
scares off physical buyers," said Leung, who pegged downside at
$785.
The benchmark contract for June 2009 delivery <JAUc6> on
the Tokyo Commodity Exchange fell to 2,922 yen per gram -- its
lowest level in three months -- and well below a 25-year high
of 3,363 yen hit in late July.
New York gold futures <GCZ8> shed $16.5 at $811.80 an
ounce.
Platinum <XPT=> fell to $1,470/1,490 an ounce from
1,517/1,537 an ounce, having hit an intraday low of $1,468 an
ounce.
"With everything falling, I guess platinum will follow
suit. I am currently looking at the $1,400 levels for support,"
said Koh of Philip Futures.
Platinum prices have taken a dramatic turn since spiking to
a record high at $2,290 an ounce in early March, losing much of
their gains to profit taking and a slowing U.S. economy that
threatens to slash demand for autocatalysts.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals.
Silver dropped to $14.07/14.13 an ounce from $14.65/14.71
an ounce, while palladium <XPD=> fell to $309.50/317.50 an
ounce from $317.00/325.00 late in New York.
Precious metals prices at 0243 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 804.15 -18.15 -2.21 -3.43
Spot Silver 14.07 -0.55 -3.76 -4.74
Spot Platinum 1469.00 -48.00 -3.16 -3.36
Spot Palladium 309.50 -8.00 -2.52 -15.90
TOCOM Gold 2922.00 -150.00 -4.88 -4.51
27752
TOCOM Platinum 5196.00 -300.00 -5.46 -2.68
13218
TOCOM Silver 506.00 -40.00 -7.33 -6.47
1006
TOCOM Palladium 1104.00 -80.00 -6.76 -18.28
1782
Euro/Dollar 1.4878
Dollar/Yen 110.17
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Louise Heavens)
