(Updates prices, adds activity in physical market)
By Lewa Pardomuan
SINGAPORE, May 9 (Reuters) - Platinum jumped to its best
level in two weeks on Friday on speculative buying ahead of the
launch of new platinum exchange-traded notes, while gold held
near a one-week high on a surging euro.
The two ETNs -- UBS E-Tracs Long Platinum ETN <PTM.P> and
UBS E-Tracs Short Platinum ETN <PTD.P> -- will start trading
soon on the NYSE Arca platform, according to CNBC television
and NYSE Euronext exchange data. []
Dealers also reported platinum purchases in Japan, Europe
and the United States as auto makers stocked up for their
second-quarter requirements, but the metal was still more than
$200 below a lifetime high of $2,290 an ounce hit on March 4.
Spot platinum <XPT=> rose as high as $2,034 an ounce, its
highest since April 23, up from $2,008.50/2,028.50 late in New
York on Thursday.
"Automobile makers start to buy, therefore the price will
increase rapidly. By the end of May, the price may be $2,100,"
said Yukuji Sonoda, precious metals analyst at Daiichi
Commodities in Tokyo.
But jewellery makers weren't buying because of the high
prices, using recycled metal instead to meet demand, said
Sonoda.
Platinum's major industrial use is in catalysts,
particularly in diesel catalysts, as it helps cleanse
environmentally damaging fumes from motor exhausts. It is also
used in jewellery.
The benchmark platinum contract for April 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange rose 150 yen per gram
higher at 6,553 yen.
Gold <XAU=> hit a high of $884.20 an ounce, not far from
Thursday's one-week high of high at $885.25 an ounce, before
dipping to $880.40/881.40 an ounce, down from $881.40/882.60 an
ounce late in New York.
"The euro has reversed after finding some support around
the 1.5821 region. That provides some support for gold," said
Adrian Koh, an analyst at Phillip Futures in Singapore.
"Higher oil prices and the platinum news are also
supportive. So basically, it's a string of good news for gold."
The euro edged up to $1.5417 <EUR=> on Friday after
rebounding from a two-month low on reduced expectations for
European Central Bank rate cuts.
In the physical market, steady purchases from jewellers in
Indonesia, Thailand and Vietnam pushed up premiums for gold
bars to 80 U.S. cents an ounce to the spot London prices in
Singapore, from 75 cents last week <GOLD/ASIA1>.
India, the world's largest gold consumer, was active an buyer
earlier this week ahead of Akshaya Tritiya, a festival when
many Hindus buy gold with the belief it will give them lasting
prosperity.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange shed $0.6 an ounce to
$881.5 an ounce.
Silver <XAG=> edged down to $16.83/16.89 an ounce from
$16.85/16.91 an ounce. Spot palladium <XPD=> rose to $434/439
an ounce from $430.50/438.50 an ounce.
Precious metals prices at 0405 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 880.25 -2.05 -0.23 5.71
Spot Silver 16.83 0.03 +0.18 13.95
Spot Platinum 2030.00 20.00 +1.00 33.55
Spot Palladium 434.00 3.50 +0.81 17.93
TOCOM Gold 2956.00 28.00 +0.96 -3.40
23919
TOCOM Platinum 6552.00 149.00 +2.33 22.72
14311
TOCOM Silver 568.20 8.80 +1.57 5.03
325
TOCOM Palladium 1479.00 27.00 +1.86 9.47
743
Euro/Dollar 1.5402
Dollar/Yen 103.51
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)
