* Gold plummets to 8-month low
* Dollar's rally trigger commodity-wide sell-off
* Platinum at lowest since mid-December
(Adds comment/detail, updates prices)
By Pratima Desai
LONDON, Aug 12 (Reuters) - Gold prices plummeted to 8-month
lows on Tuesday as the dollar's rally triggered a massive
sell-off, hitting oil and industrial metals as well.
Spot gold <XAU=> touched $801.90 an ounce, its lowest level
since late December, and was at $816.50/817.45 at 1433 GMT
compared with $819.25/820.85 late in New York on Monday.
The precious metal is down more than 20 percent since
hitting a record high of $1,030.80 on March 17.
"The speed and severity of the dollar's run higher has
resulted in some long liquidation," said Daniel Hynes, analyst
at Merrill Lynch.
"At the moment it is hard to see an end to it, but we still
have some supportive factors such as inflation, geopolitical
tensions and falling mine supply."
Prices of the metal attempted a recovery earlier on Tuesday
after the dollar slipped on profit-taking.
However, the dollar was still hovering near a 6-month high
against a basket of major currencies as investors looked beyond
U.S. growth worries to a slowing global economy. []
A stronger U.S. currency makes commodities priced in dollars
more expensive for holders of other currencies.
Oil <CLc1> hit $112.48 a barrel, the lowest since early May
as the market focused on events in currency markets and the
International Energy Agency predicted higher supplies. []
"It looks like sentiment towards gold has turned negative,
we're seeing long liquidation on the back of both dollar
movement and the oil price movement," said Suki Cooper, analyst
at Barclays Capital.
WIDESPREAD LOSSES
The higher dollar and tumbling oil subdued activity in soft
and agricultural commodities. [] []
Benchmark copper <MCU3> on the London Metal Exchange hit a
6-month low of $7,207 a tonne as escalating worries about global
economic and demand growth prompted investors to accelerate
their retreat. []
The metal used in power and construction has tumbled about
18 percent since a contract high of $8,940 a tonne on July 2.
Also under heavy selling pressure was industrial metal
platinum used to make autocatalysts. Investors have been selling
their holdings on concern about falling demand from car makers.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals.
Spot platinum <XPT=> fell to $1,462.50 an ounce, the lowest
since the middle of December, and was last at $1,492/1,512 from
$1,517/1,537 an ounce on Monday.
Prices have slid by about 35 percent since an all-time high
of $2,290 an ounce in early March.
Some analysts think further weakness in the auto
manufacturing sector could provoke another major sell-off.
"Leading economic indicators of major industrial economies
continue to indicate declining economic growth, signalling weak
demand for platinum group metals (PGMs)," Standard Bank said in
a research note.
"However, at the current pace of price decline, some
higher-cost PGM mines could become marginal producers. Metals at
their current prices also leave very little incentive to develop
new PGM projects in South Africa."
Silver dropped to $13.99 an ounce, the lowest since
December, and was at $14.72/14.77 from $14.65/14.71 on Monday.
Palladium <XPD=> touched $298 an ounce, the lowest since
October 2006, and was at $313/321 from $317/325.
(Additional reporting by David Brough)
(Reporting by Pratima Desai; editing by Michael Roddy)
