* Gold up 2 pct to track firmer equities, oil
* Nikkei jumps 6.4 pct, spurring buying in gold
* Platinum up more than 4 pct but sentiment poor
* Oil turns positive as stocks rebound
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Oct 28 (Reuters) - Gold jumped 2 percent on
Tuesday after gains in the equities markets and rebounding oil
spurred buying from investors, who were looking next to an
expected U.S. interest rate cut and economic data for
direction.
Platinum also bounced but held near five-year lows on
worries about falling demand for autocatalysts after automakers
cut output. Honda Motor Co <7267.T> cut its annual profit
forecast as a deepening financial crisis hammers global car
demand and sends the yen soaring. []
Gold was trading at $745.00 an ounce by 0646 GMT, up $15.40
an ounce from New York's notional close on Monday, having hit
an intraday low of $723.70 as early losses in stock markets
forced investors to sell bullion to cover losses.
"It's more or less short covering. We mainly deal with
physical, so we see physical interest," said Beh Hsia Wah a
dealer at United Overseas Bank in Singapore, referring to
buying from jewellers.
"I would say it's volatile," she said.
Gold fell to a session low of $706.10 on Monday on heavy
fund selling, not far from the 13-month low of $680.80 it
touched last Friday.
It has dropped as much as 27 percent since touching a
two-month high of $931 on Oct. 10 due to losses in equity
markets, with falling oil prices and a surging dollar adding to
the selling pressure, overshadowing its potential appeal as a
safe haven in the financial storm.
Bullion was well below a record high of $1,030.80 hit in
March.
"I am a bit neutral with a slight downward bias on gold.
The dollar is still on a strong rally while euro and the pound
are still on a downward slide," said Adrian Koh, analyst at
Phillip Futures in Singapore.
"I guess this week, the focus will also be on the Fed
meeting," said Koh, who expected gold to trade in a range of
between $700 and $750 an ounce.
The Nikkei average climbed 6.4 percent, with investors
picking up beaten-down shares such as Honda Motor <7267.T>,
encouraged by a softer yen and after the benchmark briefly
broke below 7,000 for the first time in 26 years. []
The euro firmed to $1.2570 <EUR=> after falling as low as
$1.2329. Dealers watched movements in the dollar amid
expectations the Federal Reserve will lower interest rates at
its two-day meeting starting on Tuesday. [].
Thursday's third-quarter U.S. GDP data -- expected to show
the economy contracted by 0.5 percent -- could also guide
precious metals as fears of a global recession escalate.
Oil erased early losses to rise by $1 to above $64,
tracking a rebound in Asian stock markets as investors returned
to buy beaten-down shares. []
Platinum <XPT=> was trading at $808.50 ounce, up $36.00
from New York's notional close on Monday, when it fell as low
as $732.50 an ounce. Platinum has lost almost a quarter of its
value since spiking to a lifetime high of $2,290 in March.
The automotive sector, which accounts for around half of
all platinum demand, has been hit hard by the prospect of
recession.
New York gold futures <GCZ8> rose $3.9 an ounce to $746.8.
Precious metals prices at 0646 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 745.00 15.40 +2.11 -10.53
Spot Silver 9.19 0.18 +2.00 -37.78
Spot Platinum 808.50 36.00 +4.66 -46.81
Spot Palladium 172.00 4.50 +2.69 -53.26
TOCOM Gold 2260.00 150.00 +7.11 -26.14
60132
TOCOM Platinum 2521.00 218.00 +9.47 -52.78
18399
TOCOM Silver 281.00 21.50 +8.29 -48.06
924
TOCOM Palladium 554.00 46.00 +9.06 -58.99
369
Euro/Dollar 1.2578
Dollar/Yen 95.44
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)
