* Gold hits weakest in 7 weeks on rising dollar
* Platinum off lows on bargain hunting
(Updates prices)
SINGAPORE, Aug 8 (Reuters) - Gold tumbled to a 7-week low
on Friday, losing some of its shine as an alternative
investment after the dollar jumped against the euro, prompting
some investors to switch funds back into currencies.
Platinum bounced off lows but fears of supply curbs
following a one-day strike in main producer South Africa
subsided. Silver was down, while palladium still attracted
bargain hunting after falling to its lowest level in eight
months this week.
Gold <XAU=> dropped to $870.25/871.25 an ounce from
$871.05/872.45 an ounce late in New York on Thursday, having
hit an intraday low of $866.25 an ounce -- its weakest since
June 26.
"In the absence of commodity-type news, I think the market
is probably going to be weaker. I think it's mainly
dollar-dominated today," said Mark Pervan, a ANZ senior
commodity analyst.
"I think around $850 would be a critical level," said
Pervan, who pegged resistance at $900.
Gold has dropped more than 15 percent in value since
spiking to a record high of $1,030.80 hit in March.
The euro fell as far as $1.5195, a five-month low, after
European Central Bank President Jean-Claude Trichet cooled
expectations for an interest rate hike by sounding a note of
concern over the slowing euro zone economy. []
UBS cut its one-month gold forecast by 15 percent to $850
from $1,000 an ounce, citing improving risk appetite, stronger
equities and a firmer dollar. []
"People get out of the market. Jewellery makers are waiting
for the good time to buy, so actual demand is not so good. The
same goes to platinum," said Yukuji Sonoda, a precious metals
analyst at Daiichi Commodities in Tokyo.
"I had thought gold will stabilise at $900. People are
disappointed," he said.
Spot platinum <XPT=> rose to $1,578.00/1,598.00 an ounce
from $1,572.00/1,592.00 late in New York on bargain hunting
after falling as low as $1,564.50 an ounce earlier in the day.
Platinum prices have taken a dramatic turn since spiking to
a record high above $2,000 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.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Comodity Exchange ended the
morning session unchanged at 5,555 yen per gram -- off intraday
low of 5,481 yen.
New York gold futures <GCZ8> fell $0.4 to $877.50 an ounce.
Spot palladium <XPD=> rose to $345.00/350.00 an ounce from
$344.00/352.00 late in New York. Silver <XAG=> edged down to
$16.11/16.16 an ounce from $16.14/16.23 late in New York.
Precious metals prices at 0218 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 870.00 -1.20 -0.14 4.48
Spot Silver 16.11 -0.05 -0.31 9.07
Spot Platinum 1578.00 6.00 +0.38 3.82
Spot Palladium 345.00 2.00 +0.58 -6.25
TOCOM Gold 3084.00 -36.00 -1.15 0.78
26903
TOCOM Platinum 5555.00 0.00 +0.00 4.05
10565
TOCOM Silver 571.50 -18.30 -3.10 5.64
689
TOCOM Palladium 1243.00 -22.00 -1.74 -7.99
215
Euro/Dollar 1.5242
Dollar/Yen 109.58
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
