* Gold up nearly 1 percent on oil, early falls in shares
* Asian shares bounce after Australia cuts rates
* Platinum jumps over 3 percent on bargain hunting
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Oct 7 (Reuters) - Gold gained nearly 1 percent
on Tuesday as investors sought havens from volatile stock
markets after a U.S. bailout package to rescue distressed banks
failed to calm fears.
Talks that other central banks would follow Australia's
move to cut interest to stem the worsening credit crisis barely
affected gold, which was also driven by a recovery in oil.
Platinum jumped more than 3 percent on bargain hunting.
Gold <XAU=> was trading at $862.75 an ounce, up $5.30 an
ounce New York's notional close on Monday, when it gained
almost 4 percent on losses in equities markets -- defying a
rallying U.S. dollar and weaker oil prices.
"There's a lot of safe-have buying. Have we bottomed from
the recent lows? In my opinion, we have already bottomed out,"
said William Kwan, bullion director at Gold Capital Management
in Singapore, adding that a bounce in equities may be
temporary.
"There'll still be further weakness in equities markets.
It's going down further in the next two weeks," he said.
The MSCI Asia-Pacific excluding Japan stocks index
<.MIAPJ0000PUS> rose 1.4 percent, rebounding from the lowest
since December 2005, after a surprisingly large interest rate
cut by Australia's central bank raised hopes other policymakers
would follow suit.[]
In theory, weaker shares lift bullion's appeal as an
alternative investment but dealers said declines in other
commodities could potentially weigh on gold as well. The
Reuters-Jefferies CRB Index <.CRB>, a global commodities
benchmark, fell 5 percent to a 13-month low.
"I suspect that gold would receive support from safe haven
buying in the near term and that might help it, but to be
honest the outlook is extremely uncertain," said David Moore,
analyst at Commonwealth Bank of Australia in Sydney.
"Our forecasts are for gold going back down into the $700s
in 2009. We quote the gold price at around $740, just above
$740 ounce as at the end of June 2009," he said.
Oil <CLc1> rose more than $2 a barrel after Australia's
interest rate cut sparked guarded optimism that global central
banks may act to stem the credit crisis and its fallout on oil
demand. []
Gold struck a record at $1,030.80 in March but has since
traded in a wide range. It tumbled to an 11-month low $736 in
early September before bouncing to its highest in two months at
$920 late last month.
"I don't know if the crisis will spread to Asia but I guess
safe haven buying is the most appropriate excuse to describe
gains in gold prices. But there's no such thing as people
rushing to buy gold bars or coins," said a physical dealer in
Singapore.
"I think $820 will offer support for gold, while $900 will
be the upside," said the dealer, referring to levels last seen
in September.
Premiums for gold bars were unchanged at $1 to the spot
London prices in Singapore. <GOLD/ASIA1>.
Platinum <XPT=> was trading at $984.50 an ounce, up 23.00
from New York's notional close on a technical rebound, having
fallen to its weakest since November 2005 at $920 on Monday on
fears of falling demand for autocatalysts.
New York gold futures <GCZ8> slipped $0.5 to $865.8 an
ounce.
Precious metals prices at 0529 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 862.75 5.30 +0.62 3.61
Spot Silver 11.21 0.20 +1.82 -24.10
Spot Platinum 984.50 23.00 +2.39 -35.23
Spot Palladium 194.00 0.00 +0.00 -47.28
TOCOM Gold 2836.00 92.00 +3.35 -7.32
36248
TOCOM Platinum 3276.00 131.00 +4.17 -38.64
14816
TOCOM Silver 371.90 8.50 +2.34 -31.26
915
TOCOM Palladium 665.00 6.00 +0.91 -50.78
453
Euro/Dollar 1.3579
Dollar/Yen 102.71
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)
