*Gold and platinum extend losses as dollar surges
* Tokyo futures hit limit down
(Updates prices)
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
to 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
touched its weakest since October 2006. Panic-selling hit
Tokyo, where platinum and gold futures sank by their daily
limits.
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 0716 GMT, spot gold <XAU=> was at $806.90/807.90 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, everyone seems to be abandoning
everything in commodities. The uptrends are gone and what took
a couple of years to move higher will just take a couple of
months to return all those gains," said Adrian Koh, analyst at
Phillip Futures.
"But precious metals look kind of oversold at the moment,
so perhaps we can hope for a slight technical bounce," he said.
The dollar hit a six-month high against a basket of major
currencies 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. []
Oil <CLc1> was down 76 cents at $113.69 a barrel.
Despite a sharp drop in bullion prices, there was only
light physical buying from jewellers, which suggested consumers
were waiting for more declines.
Some dealers in Singapore reported tight supplies in gold
bars as demand picked up since bullion steadily fell from a
four-month high around $987 in mid-July.
"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.
Physical demand from jewellers was also limited in Hong
Kong, he said. "It's moving too fast and scares off physical
buyers," said Leung, who pegged the 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.
New York gold futures <GCZ8> shed $14.4 at $813.90 an
ounce.
Platinum <XPT=> fell to $1,465.50/1,485.50 an ounce from
1,517/1,537 an ounce, having hit an intraday low of $1,462.50.
"With everything falling, I guess platinum will follow
suit. I am currently looking at the $1,400 levels for support,"
said Koh of Phillip Futures, who pegged support for sister
metal palladium at $287
Platinum has 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 $14.22/14.28 an ounce from $14.65/14.71
an ounce, while palladium <XPD=> fell to $302.00/310.00 an
ounce from $317.00/325.00 late in New York.
Precious metals prices at 0720 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 807.80 -14.50 -1.76 -2.99
Spot Silver 14.23 -0.39 -2.67 -3.66
Spot Platinum 1466.50 -50.50 -3.33 -3.52
Spot Palladium 302.00 -15.50 -4.88 -17.93
TOCOM Gold 2922.00 -150.00 -4.88 -4.51
28921
TOCOM Platinum 5196.00 -300.00 -5.46 -2.68
17153
TOCOM Silver 507.60 -38.40 -7.03 -6.17
2085
TOCOM Palladium 1093.00 -91.00 -7.69 -19.10
3554
Euro/Dollar 1.4880
Dollar/Yen 109.84
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
