* Gold plummets to 8-month low
* Dollar's rally trigger commodity-wide sell-off
* Platinum at lowest since mid-December
(Recasts, adds comment/detail, changes dateline, pvs Singapore)
By Pratima Desai
LONDON, Aug 12 (Reuters) - Gold prices plummeted to 8-month
lows on Tuesday as the dollar's rally triggered a massive
sell-off, hitting oil and industrial metals as well.
Spot gold <XAU=> touched $801.90 an ounce, its lowest level
since late December, and was at $810.60/811.60 at 1016 GMT
compared with $819.25/820.85 late in New York on Monday.
The precious metal is down more than 20 percent since
hitting a record high of $1,030.80 on March 17.
"It looks like sentiment towards gold has turned negative,
we're seeing long liquidation on the back of both dollar
movement and the oil price movement," said Suki Cooper, analyst
at Barclays Capital.
The dollar hit a 6-month high against a basket of major
currencies as investors looked beyond U.S. growth worries to a
slowing global economy. []
A stronger U.S. currency makes commodities priced in dollars
more expensive for holders of other currencies.
Oil <CLc1> hit $112.48 a barrel, the lowest since early May
as the market focused on events in currency markets and the
International Energy Agency predicted higher supplies. []
"Commodity prices in general, and precious metal prices in
particular, continue to slide as the dollar strengthens,"
Standard Bank said in a note. "Reports of weak bullion demand
out of India added to the sell-off." []
WIDESPREAD
The higher dollar and tumbling oil subdued activity in soft
and agricultural commodities. [] []
Benchmark copper <MCU3> on the London Metal Exchange hit a
6-month low of $7,251 a tonne as escalating worries about global
economic and demand growth prompted investors to accelerate
their retreat. []
The metal used in power and construction has tumbled about
18 percent since a contract high of $8,940 a tonne on July 2.
"Everyone seems to be abandoning everything in commodities,"
said Adrian Koh, analyst at Phillip Futures.
Also under heavy selling pressure was industrial metal
platinum used to make autocatalysts. Investors have been selling
their holdings on concern about falling demand from car makers.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals.
Spot platinum <XPT=> fell to $1,462.50 an ounce, the lowest
since the middle of December, and was last at $1,475/1,495 from
$1,517/1,537 an ounce on Monday.
Prices have slid by about 35 percent since an all-time high
of $2,290 an ounce in early March.
Some analysts think further weakness in the auto
manufacturing sector could provoke another major sell-off.
"Leading economic indicators of major industrial economies
continue to indicate declining economic growth, signalling weak
demand for platinum group metals (PGMs)," Standard Bank said.
"However, at the current pace of price decline, some
higher-cost PGM mines could become marginal producers. Metals at
their current prices also leave very little incentive to develop
new PGM projects in South Africa."
Silver dropped to $13.99 an ounce, the lowest since
December, and was at $14.36/14.41 from $14.65/14.71 on Monday.
Palladium <XPD=> touched $298 an ounce, the lowest since
October 2006, and was at $309/317 from $317/325.
(Additional reporting by David Brough)
(Reporting by Pratima Desai; editing by Michael Roddy)
