(Updates prices, adds closing in Tokyo)
By Lewa Pardomuan
SINGAPORE, March 7 (Reuters) - Gold paused for breath after
tumbling from a record high the previous day, with investors
eyeing U.S. jobs data due later on Friday and a possible test
of the $1,000 an ounce level.
Gold <XAU=> rose to $978.00/978.80 an ounce from
$976.20/976.95 late in New York on Thursday, when it hit a
record of $991.90 on dollar weakness before profit taking
erased much of the gains.
Bargain hunters and jewellers were buying on dips but some
investors were on the sidelines ahead of the release of
February U.S. employment data, which is forecast to show a rise
in jobs after a surprising loss in January.
"There's some correction in the market but it is still
aiming at $1,000. The dollar is very weak against the euro.
That's the main reason," said Yukuji Sonoda, precious metals
analyst at Daiichi Commodities in Tokyo.
Sky-high bullion prices may scare off jewellers but strong
sales on the exchange-traded funds will offset declines in
demand from the jewellery sector, said Sonoda.
Gold by New York-listed StreetTRACKS Gold Shares
<GLD.P><XAUEXT-NYS-TT>, the world's largest gold-backed ETF,
showed holdings of 647.56 tonnes -- near a record of 652.56
tonnes in mid-January.
Gold has gained nearly 20 percent in 2008 as funds,
speculators and investors buy the precious metal on
expectations of further interest rate cuts in the United States
and record-high oil, which elevates its safe-haven appeal.
Dealers expected volatile trade ahead.
"There might be some selling pressure because the market is
slightly overstretched. Small speculators are still trying to
pick a top, hedge funds are still practically quite long," said
William Kwan, a dealer at Phillip Futures in Singapore.
"Looking ahead, we can break $1,000 but it might not be so
sustainable. I do foresee a so-called sharp reversal next week
but most probably we'll see $1,000," Kwan said.
The dollar dropped to an all-time low against a
trade-weighted basket of major currencies, with the dollar
index falling as low as 72.698 <.DXY>.
The Fed is expected to cut its benchmark overnight lending
rate by at least 50 basis points later this month. The fed
funds target rate has been lowered by 2.25 percentage points to
3.0 percent since mid-September.
Silver held below a 27-year high, palladium touched
one-week low, while platinum was hit by selling in Japan and
news that main producer South Africa will let mines increase
power consumption []
Silver <XAG=> edged down to $20.08/20.13 an ounce from
$20.15/20.18 an ounce, having reached a 27-year peak of $21.20
an ounce on Thursday.
Spot platinum <XPT=> fell to $2,158/2,168 an ounce from
$2,170/2,180 an ounce late in New York. Spot palladium <XPD=>
hardly changed at $513/518 an ounce.
The most active platinum contracts on Tokyo Commodity
Exchange <0#JPL:>, currently February 2009, ended by the daily
300 yen per gram limit at 7,007 yen after the Japanese currency
jumped to a three-year high against the dollar and sparked
selling.
Gold futures for April delivery <GCJ8> on the COMEX
division of the New York Mercantile Exchange jumped $2.8 an
ounce to $979.9 an ounce -- off its record high of $995.2 hit
on March 5.
Precious metals prices at 0834 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 978.10 -0.20 -0.02 17.46
Spot Silver 20.06 -0.09 -0.45 35.82
Spot Platinum 2158.00 -12.00 -0.55 41.97
Spot Palladium 513.00 0.00 +0.00 39.40
TOCOM Gold 3250.00 -65.00 -1.96 6.21
76116
TOCOM Platinum 7007.00 -300.00 -4.11 31.24
31878
TOCOM Silver 664.50 -35.50 -5.07 22.83
2221
TOCOM Palladium 1812.00 -100.00 -5.23 34.12
1777
Euro/Dollar 1.5386
Dollar/Yen 102.34
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)
