* Gold market watching Greece, ETFs
* Supply concern pushes platinum to highest since January
* Coming up: U.S. manufacturing data at 1230 GMT
(Recasts, adds comment/detail, pvs SINGAPORE)
By Pratima Desai
LONDON, March 31 (Reuters) - Gold rose on Wednesday as the
dollar slipped against major currencies and strong investment
demand boosted sentiment, but prices are expected to be capped
by technical resistance.
Platinum <XPT=> jumped to $1,646.50 an ounce, its highest
since January 20 on worries about supplies from South Africa,
the world's largest producer of the metal used to make
auatcatalysts that clean car emissions.
Spot gold <XAU=> was at $1,108.65 a troy ounce at 1003 GMT
from $1,102.50 an ounce late in New York on Tuesday.
The dollar hit a three-month high against the yen as strong
dollar demand from Japanese importers for financial year-end
book closing triggered widespread buying. []
However, against a basket of currencies <.DXY> and the euro
<EUR=> the dollar was lower, making dollar-denominated gold
cheaper for holders of other currencies.
"Gold generally moves with the dollar," said John Meyer,
analyst at investment bank Fairfax. "The flow of funds into ETFs
(exchange traded funds) could mean a strong end to the quarter
for metals, that will lead new money into the market."
The market is also watching Greece, which with its fiscal
problems has dragged the euro <EUR=> down against the dollar in
recent months. []
That has weighed on gold, but uncertainty about finances in
euro zone countries is a strong support.
"We view the upside risk as dominant today, supported by
indications that Greece is starting to fail in raising money
through bond issues," SEB said in a note.
For a graphic on first quarter price performances, click on
http://graphics.thomsonreuters.com/310/CMD_Q1PRF0310.gif
NO. 1 FURNACE
U.S. gold futures for June delivery <GCM0> gained $4.20 to
$1,109.90 an ounce after falling on Tuesday due to month-end
position squaring and contract rollover.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,129.823 tonnes as
of March 30, unchanged from the previous day, about 5 tonnes
below a record high of 1,134.03 tonnes on June 1, 2009.
[]
"Gold for the moment continues to consolidate with good
volumes of physical and investment demand providing support,"
said TheBullionDesk.com in a note.
"However, the metal remains capped by overhead mid-term
downtrend resistance and the 100-day moving average at $1,120,
with another stalled rally potentially triggering a re-test of
the $1,085 level."
A break of $1,120 is possible, but it needs a strong
trigger, one trader said, adding trading was subdued ahead of
some key jobs data from the United States on Friday, which could
help determine the future direction of the dollar.
"Platinum has had a good run today due to Lonmin."
The world's third largest platinum producer, Lonmin <LMI.L>,
said it had shut its No. 1 furnace after another incident at the
smelter, with repairs expected to take over a month.
The No.1 furnace, rebuilt last year, has a history of
problems and has often forced the firm to cut sales guidance.
Lonmin said no one was hurt in Tuesday's incident and that
its initial estimate was that a full repair would take around
30-40 days. The firm is aiming for 2010 platinum sales of
700,000 ounces. []
Spot platinum was at $1,641.50 an ounce from $1,616.50 on
Tuesday, palladium <XPD=> at $477.00 from $466.50 and silver
<XAG=> at $17.47 from $17.25.
(Editing by James Jukwey)
