* Firm oil lifts gold
* Platinum hits 6-month low on fears of falling demand
* U.S. auto sales plunged to 16-year low in July
(Updates prices, adds activity in physical sector)
By Lewa Pardomuan
SINGAPORE, Aug 4 (Reuters) - Gold rebounded on Monday after
oil jumped on supply worries, while platinum fell to its lowest
level in more than six months on poor car sales, which will
potentially slash demand for autocatalysts.
The most active contract on Tokyo platinum futures tumbled
by the daily limit to its weakest since late January as
speculators ditched their contracts. Cash palladium, which
normally tracks sister metal platinum, held near a 7-month low.
Gold <XAU=> edged up to $913.60/914.70 an ounce from
$909.85/911.45 late in New York on Friday -- well below a
four-month high of $987.75 in mid-July.
"Until there's some really bad news out of the U.S., I
think gold could be slightly weighed the on dollar's rise,"
said Adrian Koh, an analyst at Philip Futures in Singapore.
"There's still no sign that it's out of the near-term
downtrend and we are still very near to the $890-$895
supports." Oil <CLc1> rose 81 cents to $125.91 a barrel
after the United States said Iran had left the U.N. Security
Council no choice but to increase sanctions on the Islamic
Republic for ignoring demands that it halt sensitive nuclear
activities. []
In theory, high oil prices elevate gold's appeal as a hedge
against inflation.
The physical sector saw light buying from Indonesia but
other consumers such as Vietnam and Thailand waited for a
correction. Premiums for gold bars were unchanged at 60 U.S.
cents an ounce to spot London prices in Singapore.
<GOLD/ASIA1>.
Spot platinum <XPT=> fell as low as $1,612.50 an ounce, its
lowest level since Jan. 25, from $1,646.50/1,666.50 an ounce
late in New York, on fears over the health of carmakers, which
consume around half of the world's platinum each year.
U.S. auto sales hit a 16-year low in July, led by a 27
percent drop at General Motors Corp <GM.N>, as high gas prices
and tight credit sent the industry into a tailspin.
[]
"Platinum looks really bad now," said Koh of Philip
Futures. "It is below the previous $1,684 support and likely to
head towards $1,574.50. It's below all supports and I think
it's in freefall mode."
Shares of Japanese automakers Honda Motor <7267.T> and
Toyota Motor <7203.T> fell on Monday after weak U.S. auto
industry sales. Despite lower prices, there were no signs of
buying interest yet from jewellery and automakers, said
dealers.
"The bear trend continues. The target price is $1,500,"
said Kazuhiko Saito of Interes Capital Management in Tokyo,
referring to a level last seen in January. "We may see the
price below $1,500 this week," he said.
Platinum is well below a record high of $2,290 hit in early
March, when a power shortage in main producer South Africa
disrupted mining and triggered supply worries.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange fell by the
300 yen limit to 5,567 yen per gram before bouncing.
New York gold futures <GCZ8> added $3.8 to $921.30 an
ounce.
Spot palladium <XPD=> rose to $366.00/374.00 an ounce from
$364.00/372.00 late in New York. Silver <XAG=> edged up to
$17.55/17.60 an ounce from $17.47/17.55 late in New York.
Precious metals prices at 0805 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 912.40 2.85 +0.31 9.57
Spot Silver 17.52 0.09 +0.52 18.62
Spot Platinum 1621.00 -25.50 -1.55 6.64
Spot Palladium 366.00 2.00 +0.55 -0.54
TOCOM Gold 3190.00 27.00 +0.85 4.25
33910
TOCOM Platinum 5593.00 -274.00 -4.67 4.76
34449
TOCOM Silver 613.70 1.70 +0.28 13.44
597
TOCOM Palladium 1300.00 -16.00 -1.22 -3.77
3997
Euro/Dollar 1.5585
Dollar/Yen 107.80
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
