(Refiles to add dropped words "May consumer inflation data" in
paragraph 8)
(Updates prices to afternoon, adds ETF)
By Lewa Pardomuan
SINGAPORE, June 13 (Reuters) - Gold rebounded on Friday as
investors sought bargains after prices dropped to near a
six-week low the previous day on a firmer U.S. dollar, but the
$900 resistance level remains a tough one to crack.
Gold <XAU=> rose to $871.45/872.45 an ounce from
$867.55/869.55 late in New York on Thursday, when it fell to as
low as $856.80, its lowest since May 2.
Gold has lost more than 4 percent in value this week since
hitting a near two-week high of $908.70 on Monday. It is well
below a record high of $1,030.80 hit in mid-March.
Bullion was likely to track movements in the currency and
energy markets, where record crude prices have boosted its
appeal as a hedge against inflation. Silver was also off a
six-week low, while platinum and palladium firmed.
"Given that inflation is a global problem at the moment, I
suspect there's a chance for gold to remain well bid and then
possibly push back up towards $900 at some point," said Darren
Heathcote of Investec Australia in Sydney.
"Unless, of course, the dollar manages to add a significant
amount of strength to its current position."
The dollar fell from a nearly four-month high against the
yen as investors booked profits from this week's rally before a
gathering of Group of Eight finance ministers in Japan this
weekend. <USD/>.
But investors expect more dollar-supportive comments from
U.S. Treasury Secretary Henry Paulson at the G8 meeting. They
also await the U.S. Labor Department's May consumer inflation
data at 1230 GMT.
"There's a bit of Japanese buying, but it looks like people
don't want to do much ahead of the G8 meeting. We don't hear
much interest from other regions," said a bullion dealer in
Hong Kong.
"I guess $875 will be a tough barrier for the upside, while
$868 will the downside. That's the range," he added.
The market barely reacted to news the Tokyo Stock Exchange
[] will list a gold exchange-traded fund (ETF) that is
backed by bullion on June 30. []
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $2.0 an
ounce to $874.0.
U.S. crude oil <CLc1> was off 1 cent at $136.73 a barrel,
still within sight of last week's record $139.12.
"I think we've support around $862-$864 an ounce. As far as
today is concerned, probably around $869-$870 is the current
support level," said Investec Australia's Heathcote. "The
reason gold has remained relatively buoyant in the last year or
two is still there. Inflation is a big concern."
The most active Tokyo platinum contract for April 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange rose 63 yen
per gram at 6,898 yen.
Spot platinum <XPT=> rose to $2,022.50/2,042.50 an ounce
from $2,010.50/2,030.50 late in New York.
Silver <XAG=> edged up to $16.55/16.61 an ounce from
$16.44/16.54. Spot palladium <XPD=> rose to $435.00/443.00 an
ounce from $433.50/441.50.
Precious metals prices at 0522 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 871.60 3.70 +0.43 4.67
Spot Silver 16.57 0.14 +0.85 12.19
Spot Platinum 2022.50 12.00 +0.60 33.06
Spot Palladium 435.00 0.00 +0.00 18.21
TOCOM Gold 3046.00 12.00 +0.40 -0.46
19153
TOCOM Platinum 6899.00 64.00 +0.94 29.22
14444
TOCOM Silver 580.70 0.50 +0.09 7.34
355
TOCOM Palladium 1536.00 43.00 +2.88 13.69
1863
Euro/Dollar 1.5442
Dollar/Yen 107.75
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)
