(Adds quote, prices in Tokyo by the end of the morning
session) By Maryelle Demongeot
SINGAPORE, May 29 (Reuters) - Gold was steady on Thursday
but under pressure as the U.S. dollar held onto the previous
day's gains, pushing oil lower and weakening bullion's appeal
both as an anti-inflation tool and an alternative currency.
Spot gold <XAU=> was quoted at $900.50/901.50 an ounce by
0310 GMT, marginally up from $899.65/901.05 an ounce in New
York on Wednesday.
"A firmer dollar and weaker oil are two negatives for gold.
So gold could easily underperform oil," said Mark Pervan,
senior commodities analyst with ANZ.
"If oil falls 3-4 percent this week, gold could fall 4-5
percent," Pervan added, predicting that gold prices could fall
to $880 an ounce by the end of this week, and $850 next week
before bottoming out.
Gold has already fallen some $35 an ounce from last week's
$935.30-high, which was its highest in a month and came after
oil hit an all-time peak of $135.09 a barrel.
The dollar on Thursday clung to gains made in the previous
session after stronger-than-expected U.S. durable goods orders
eased concerns about the U.S. economy outlook. []
The dollar index, which measures the dollar's value against
a basket of major currencies, dipped to 72.506 <.DXY>, but
still kept much of the gains made on Wednesday when it rose
around 0.3 percent.
The stronger dollar also added a bearish tone to oil
prices, which have failed to reach new records for a week as
several developing nations in Asia have cut subsidies, possibly
prompting a drop in Asian energy demand.
Front-month U.S. crude for July delivery <CLc1> was down 66
cents at $130.37 a barrel on the Globex electronic trading
platform by 0319 GMT.
Gold tends to move in line with oil prices as dearer crude
boosts bullion's appeal as a hedge against inflation.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange were down $0.30 an ounce at
$900.20 an ounce.
The most active Tokyo gold futures contract <0#JAU:>, for
April, ended the morning session on the Tocom Commodity
Exchange up 31 yen at 3,059 yen per gram.
Spot platinum <XPT=> was quoted at $2,055.50/2,075.50 an
ounce, little changed from $2,059/2,079 late in New York.
The most active Tokyo platinum futures <0#JPL:> for April
was up 39 yen per gram to 6,779 yen by late morning, after
having settled down 300 yen, its daily limit, at 6,740 yen on
Wednesday.
Spot silver <XAG=> edged up to $17.38/17.45 an ounce from
$17.37/17.43 an ounce.
Spot palladium <XPD=> was quoted at $431/436 an ounce, from
$432/$440.
Precious metals prices at 0310 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 900.50 0.40 +0.04 8.14
Spot Silver 17.38 0.02 +0.12 17.67
Spot Platinum 2055.50 -3.50 -0.17 35.23
Spot Palladium 431.00 -1.50 -0.35 17.12
TOCOM Gold 3059.00 31.00 +1.02 -0.03
12938
TOCOM Platinum 6779.00 39.00 +0.58 26.97
12035
TOCOM Silver 591.60 9.00 +1.54 9.35
283
TOCOM Palladium 1485.00 30.00 +2.06 9.92
668
Euro/Dollar 1.5652
Dollar/Yen 104.85
Note - TOCOM prices in yen per gram, except TOCOM silver which
is priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
