* Gold off 1-week high on commods sell-down after US GDP
data
* Oil drops $1 on recession fears
* Nikkei slips 2.7 percent on profit taking
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Oct 31 (Reuters) - Gold slipped on Friday and
was on course for its biggest monthly decline since 1983, as
oil fell on recession fears, the dollar firmed and stocks
reversed gains, forcing investors to cash in to stem losses.
U.S. gross domestic product shrank at an annual rate of 0.3
percent for the third quarter -- the sharpest fall in the
world's largest economy in seven years -- spurring a broad
commodities sell-off on concerns over weakening fundamentals.
The U.S. dollar's rebound also weighed.
Platinum fell more than 4 percent as slowing economies
around the globe and the widespread credit crisis caused the
largest auto industry companies to slash full-year profit
targets, warn of job losses and push for speedy government
handouts.
Gold <XAU=> was at $731.45 an ounce, down $4.05 from New
York's notional close on Thursday, when it rose for a fourth
straight day to its strongest in a week at $776.30 an ounce.
"Investors are reluctant to buy too much, in case anything
happens. We've seen a little bit of physical selling around
$770," said Ronald Leung, director of Lee Cheong Gold Dealers
in Hong Kong, referring to this week's high.
Premiums for gold bars eased to $1.70 an ounce to the spot
London prices from $3 last week after holders cashed in on this
week's rally. <GOLD/ASIA1>
Gold has lost as much as 21 percent of its value this month
alone, and is down 12 percent this year.
Oil <CLc1> extended losses to below $65 a barrel on Friday
and looked headed for its biggest-ever monthly loss, as weak
economic data rekindled demand worries, which in theory reduces
gold's appeal as a hedge against inflation. []
Gold hit a 13-month low of $680.80 last week after
investors sold bullion to pay for margin calls. A recovery in
stock markets and firmer oil spurred a rebound in gold this
week but technical selling emerged after it failed to sustain
Thursday's high.
"Only if $775 is breached, then gold would be able to head
towards the next resistance at $806," said analyst Pradeep Unni
at Richcomm Global Services.
"Gains could be quick once $775 is scythed convincingly."
Gold, which has benefited from safe-haven buying, fears of
rising energy costs and uncertainties in the dollar's outlook,
was well below a recod high of $1,030.80 struck in March.
The Nikkei <> slipped 2.7 percent on Friday as
investors' jitters before a Bank of Japan rate decision led to
profit taking. []
The euro dipped to $1.2770 <EUR=>, making dollar-priced
gold more expensive for holders of other currencies.
Platinum <XPT=> was trading at $783.00 ounce, down $34 from
New York's notional close. It has lost more than 60 percent of
its value since hitting a lifetime high of $2,290 in March,
mainly due to worries about falling demand for autocatalysts.
As the strong yen forced Japanese carmakers Mazda <7261.T> and
Mitsubishi <7211.T> to slash full-year targets, struggling U.S.
automakers were looking to obtain billions from the U.S.
government to help them survive. []
More than 60 percent of global platinum use goes to
autocatalysts to clean exhaust fumes.
New York gold futures <GCZ8> fell $6.7 an ounce to $731.9.
Precious metals prices at 0249 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 731.45 -4.05 -0.55 -12.16
Spot Silver 9.30 -0.36 -3.73 -37.03
Spot Platinum 783.00 -34.00 -4.16 -48.49
Spot Palladium 196.00 -1.00 -0.51 -46.74
TOCOM Gold 2307.00 -142.00 -5.80 -24.61
25848
TOCOM Platinum 2496.00 -254.00 -9.24 -53.25
8795
TOCOM Silver 290.70 -33.00 -10.19 -46.27
436
TOCOM Palladium 622.00 -35.00 -5.33 -53.96
329
Euro/Dollar 1.2851
Dollar/Yen 98.22
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)
