(Recasts with prices, quotes, changes dateline, pvs SYDNEY)
By Lewa Pardomuan
LONDON, May 19 (Reuters) - Gold extended gains to hit its
highest level in nearly a month above $900 an ounce on Monday on
the back of speculative buying as oil held near record high,
raising fears of inflation.
Platinum tracked gold's gains and jumped to its highest
level in more than months. Speculation that precious metals
refiner Johnson Matthey <JMAT.L> would release bullish supply
and demand outlook report for 2008 also spurred buying.
Spot gold <XAU=> hit a high of $911.60 an ounce, its highest
level since April 23, up from $899.55/900.95 late in New York on
Friday but remained below a lifetime high of $1,130.80 hit on
March 17.
Previous attempts to revisit the record high have been meet
by heavy profit taking, which saw gold fall to a four-month low
at $845 an ounce in early May.
"Whether gold will hold above $900 is a difficult question.
Around about $920 should be the psychological resistance for the
metal," said Walter De Wet, analyst at Standard Bank.
"If the dollar can appreciate again to around $1.54 (against
the euro), we should see gold becoming down again. Platinum of
course remains very well supported from the physical side."
Oil extended last week's climb that saw prices jump to a
record high near $128 a barrel, as concerns over tight fuel
supplies overshadowed gains in the U.S. dollar. []
In theory, rising crude oil lifts gold's appeal as a hedge
against inflation.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange added $9.10 an ounce to
$909.00 an ounce in electronic trading.
Spot platinum <XPT=> rose to $2,146.50/2,166.50 an ounce
from $2,126/2,141 an ounce late in New York, having earlier hit
an intraday high of $2,174 an ounce -- its best level since
March 7.
Johnson Matthey, the world's largest distributor of
platinum, will release the report at 1200 GMT on Monday.
"Given the thinner conditions expected this week, and the
potential reaction the JM report/Platinum Week related rumours,
there's the potential to see the metal push above $2,200 an
ounce and even challenge close to the metal's all time highs,"
TheBullionDesk.com said in a report.
Platinum struck a record high of $2,290 an ounce on March 4
after a power crisis in main producer South Africa disrupted
mining and sparked fear of a supply deficit.
In the physical sector, dealers in Asia noted some selling
from speculators who cashed in on platinum's gains but demand
from the industrial sector remained solid.
"The automobile and glass industries are aggressive buyers
for physical platinum, but retail investors cash in," said a
dealer in Tokyo.
"Our sales today are mostly for the industrial sector," he
said.
The market shrugged off news a wave of xenophobic attacks
spread through South African townships and mobs beat foreigners
and set some ablaze in scenes reminiscent of apartheid era
violence. []
In other precious metals, spot silver <XAG=> rose to
$17.12/17.17 an ounce from $16.90/17.00 late in New York.
Spot palladium <XPD=> firmed to $445.50/453.50 an ounce from
$443/451 on Friday.
(Editing by Christopher Johnson)
