(Recasts, adds quotes, changes prices, pvs TOKYO)
By Atul Prakash
LONDON, April 17 (Reuters) - Gold climbed to a three-week
high above $950 an ounce on Thursday on record high oil prices
and a struggling dollar, but the bullion market needed an extra
push to move substantially higher, analysts said.
Other precious metals also advanced tracking gold prices,
with both silver and platinum rising more than 2 percent to
one-month highs and palladium gaining 1.75 percent.
Spot gold <XAU=> rose as high as $952.60 an ounce and was
quoted at $950.00/951.00 at 1006 GMT, against $943.90/944.70 in
New York late on Wednesday, when the metal gained 2 percent.
"Crude oil is still rising and that's supporting commodities
across the board. On top of that, the market seems to be eying a
break for the euro/dollar above $1.60," said Walter De Wet,
precious metals analyst at Standard Bank.
"If gold breaks the $950-$954 level, technically we might
see a rally higher. But for the metal to test much higher, we
need some increased risk aversion and that may come from some
really bad U.S. data or poor earnings results."
Analysts said that gold's upward move was not yet convincing
despite positive factors such as a record low dollar against the
euro and historically high oil prices. A similar environment
powered gold to a record high of $1,030.80 an ounce last month.
Oil prices set a record above $115 a barrel as a fall in
U.S. gasoline inventories raised supply shortage concerns ahead
of the summer driving season.
Gold is generally seen as a hedge against oil-led inflation
and often moves in the opposite direction of the dollar, as the
metal is traditionally considered as an alternative investment
and a safe-haven asset.
$950 KEY LEVEL
Some analysts said bullion outlook appeared positive.
"With a barrage of economic feeds supporting gold from
multiple sides, gold gains from here on seem inevitable,
especially if gold holds above $950," said Pradeep Unni, analyst
at Vision Commodities.
"As interest rates between the U.S. and the European Union
widen, the dollar is likely to get further dumped favouring gold
in the process. Gold is also increasingly trying to catch up
with the gains in crude oil."
The euro hovered just below a record high near $1.60 versus
the dollar, with sentiment supported by views the European
Central Bank is unlikely to cut rates soon.
By contrast, the dollar was pressured as investors focused
on slowing economic growth due to credit problems and a limping
housing market with further interest rate cuts seen from the
U.S. Federal Reserve.
Analysts said the market will zero in on earnings results
from Merrill Lynch <MER.N> and Bank of New York Mellon <BK.N> on
Thursday and Citigroup <C.N> on Friday.
In other markets, U.S. gold futures for June delivery <GCM8>
rose $5.7 an ounce to $953.90.
Platinum <XPT=> rose as high as $2,063 an ounce and was last
quoted at $2,060/2,070, up from $2,015/2,025 in the U.S. market
late on Wednesday.
The key platinum contract for February delivery <0#JPL:> on
the Tokyo Commodity Exchange rose by its daily 300-yen limit to
6,610 yen a gram.
Silver <XAG=> climbed to $18.68/18.73 an ounce from
$18.28/18.33 an ounce, while palladium <XPD=> was up $8 at
$463/468.
(Editing by Peter Blackburn)
