(Updates prices)
SINGAPORE, July 25 (Reuters) - Gold gained on Friday as a
rebound in oil prices restored its appeal as a hedge against
inflation, while bargain hunting plucked platinum from a
six-week low.
Precious metals have been hit by heavy selling this week on
declines in oil prices and a steadier dollar. Platinum was the
hardest hit as fears of falling global car sales, blamed on a
slowing U.S. economy, could cut demand for autocatalysts.
Gold <XAU=> rose to $927.40/928.40 an ounce from
$923.00/924.00 late in New York on Thursday when it struck a
two-week low of $915.80 before rebounding on firmer oil.
Despite the rebound, dealers remained cautious after gold's
failure to hold above a four-month high of $987.75 hit last
week -- not far from a record high of $1,030.80 struck in
March.
"Everything depends on oil prices and U.S. stocks. $900 may
be the next bottom price," said Yukuji Sonoda, precious metals
analyst at Daiichi Commodities in Tokyo.
Oil <CLc1> was steady above $125 a barrel, aided by short
covering after falling to its lowest level in seven weeks in
previous session. Oil has dropped more than $20 from the record
$147.27 hit on July 11. []
A Reuters poll showed average gold prices will rise more
than 30 percent this year and hold onto gains in 2009, as
safe-haven buying fuelled by ongoing financial risks will boost
investor interest. []
Spot platinum <XPT=> fell as low as $1,702.50 an ounce,
hovering near Thursday's six-month low of $1,701.50, before
bouncing to $1,715.00/1,730.00, up from $1,709.50/1,729.50 late
in New York.
A lack of buying from jewellery makers and automakers as
well as persistent selling in Tokyo platinum futures <0#JPL:>
weighed on sentiment in platinum, said Sonoda of Daiichi
Commodities.
"We can't see actual demand in the market. I personally
fear platinum price may fall to $1,600," he said, referring to
a level last seen in January.
Platinum hit a record at $2,290 in March after an
electricity shortage that disrupted mining in main producer
South Africa triggered speculative buying, but a combination of
profit taking and demand fears erased most of the gains.
But a Reuters poll showed the average platinum price is
expected to rise more than 50 percent this year than in 2007 as
supply fears from major producer South Africa boost the market.
[]
The most active Tokyo gold contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange fell 6 yen per gram to
3,228 yen.
Spot palladium <XPD=> rose to $385.00/392.00 an ounce from
$382.00/390.00 late in New York. Silver <XAG=> edged up to
$17.45/17.52 an ounce from $17.34/17.40 late in New York.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $5.8 to
$928.10 an ounce.
Precious metals prices at 0151 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 927.40 0.90 +0.10 11.37
Spot Silver 17.45 0.05 +0.29 18.14
Spot Platinum 1713.50 11.00 +0.65 12.73
Spot Palladium 385.00 0.50 +0.13 4.62
TOCOM Gold 3228.00 -6.00 -0.19 5.49
12211
TOCOM Platinum 5880.00 -59.00 -0.99 10.13
12818
TOCOM Silver 608.60 -2.20 -0.36 12.50
332
TOCOM Palladium 1367.00 3.00 +0.22 1.18
421
Euro/Dollar 1.5668
Dollar/Yen 107.23
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 Michael Urquhart)
