* Gold plummets to 8-month low
* Dollar's rally trigger commodity-wide sell-off
* Platinum at lowest since mid-December
(Recasts, updates with comments, closing prices, market
activity, adds NEW YORK to dateline)
By Frank Tang and Pratima Desai
NEW YORK/LONDON, Aug 12 (Reuters) - Gold prices plummeted
to 8-month lows on Tuesday, ending below $815 an ounce 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 $814.50/815.50 by New York's
last quote at 2:15 p.m. EDT (1815 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.
U.S. crude futures <CLc1> also weakened, hitting a bottom
of $112.31 a barrel, the lowest since early May as the market
focused on events in currency markets and the International
Energy Agency predicted higher supplies. []
Carlos Sanchez, precious metals analyst at CPM Group in New
York, said that gold could test the $800 level this week due to
a rising dollar, crude weakness and a recovering stock market,
but bullion could turn stronger toward the end of the year due
to positive market fundamentals.
U.S. gold futures for December delivery <GCZ8> settled down
$13.70, or 1.7 percent, at $814.60 an ounce on the COMEX
division of New York Mercantile Exchange.
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 $1,462.00 an ounce, the lowest
since the middle of December, and was last at
$1,469.50/1,489.50 an ounce, down from $1,517/1,537 an ounce
late on Monday in New York.
Prices have slid by about 35 percent since an all-time high
of $2,290 an ounce in early March.
Ralph D'Esposito, NYMEX floor trader with RJ Futures, said
that platinum's weakness was a continuation of the recent
sell-off based on fears that demand for platinum auto catalytic
converters would tank following dismal global car sales.
D'Esposito said that a rising open interest for futures in
platinum signaled new short positions were created, but the
metal could rebound due to short covering.
Silver <XAG=> dropped to $13.99 an ounce, the lowest since
December, and was at $14.59/14.65, down from $14.65/14.71, its
previous U.S. close on Monday.
Palladium <XPD=> touched $298 an ounce, the lowest since
October 2006, and was at $306/314 from $317/325 last on Monday
in New York.
(Additional reporting by David Brough in London; Editing by
Christian Wiessner)
