* Gold off two-week low on firmer oil
* Bargain hunting lifts platinum, physical buyers sidelined
* Market awaits U.S. housing and durable goods data
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 25 (Reuters) - Gold gained on Friday as a
rebound in oil prices restored its appeal as a hedge against
inflation but dealers said the metal must crack key technical
levels to sustain the uptrend.
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 $931.60/932.60 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
"I think the market looks a little oversold, short-term. I
think there could have been sort of bargain buying but I think
ahead of the weekend, it's not too strong," said Mark Pervan,
senior commodities analyst with ANZ in Melbourne.
"I suppose $950 looks like a key number. If it pushes
towards that number, then I think we could see further buying
but really it's going to be closely watching the oil price."
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. []
Despite the rebound in gold, dealers remained cautious
after its 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.
New York gold futures <GCQ8> added $9.9 to $932.20 anounce.
The euro firmed to $1.5699 <EUR=> ahead of the release of
U.S. data on Friday which includes new home sales and durable
goods orders for June. []
A Reuters poll showed average gold prices are expected to
rise more than 30 percent this year and hold onto gains in 2009
as ongoing financial risks 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 $1,731.00/1,751.00, 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 Yukuji Sonoda, precious
metals analyst at Daiichi Commodities in Tokyo.
"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 disrupted mining in main producer South
Africa and 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 may
rise more than 50 percent in 2008 versus last year as supply
fears from South Africa boost the market. []
The most active Tokyo gold contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange fell 10 yen per gram
to 3,224 yen.
Spot palladium <XPD=> rose to $388.00/393.00 an ounce from
$382.00/390.00 late in New York. Silver <XAG=> edged up to
$17.54/17.60 an ounce from $17.34/17.40 late in New York.
Precious metals prices at 0728 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 932.70 6.20 +0.67 12.01
Spot Silver 17.57 0.17 +0.98 18.96
Spot Platinum 1732.50 30.00 +1.76 13.98
Spot Palladium 388.00 3.50 +0.91 5.43
TOCOM Gold 3228.00 -6.00 -0.19 5.49
34765
TOCOM Platinum 5912.00 -27.00 -0.45 10.73
24128
TOCOM Silver 608.50 -2.30 -0.38 12.48
739
TOCOM Palladium 1370.00 6.00 +0.44 1.41
720
Euro/Dollar 1.5715
Dollar/Yen 106.64
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Lincoln Feast)
