* U.S. equities fall at the open on recession fears
* Oil, base metals post losses on weak demand outlook
* Silver, platinum, rhodium slip as traders fret over demand
(Recasts, adds comment)
By Jan Harvey
LONDON, Oct 15 (Reuters) - Gold leapt more than 2 percent on
Wednesday, reversing earlier losses, as a slide in U.S. equity
markets prompted funds to buy bullion as a haven from risk.
At the same time, silver fell 5 percent, platinum nearly 5
percent and rhodium more than 20 percent as fears about the
global economic outlook added to the perception that demand will
fall for precious metals that have an industrial use.
Spot gold <XAU=> was at $843.20/845.70 an ounce at 1439 GMT,
up from $835.25 in late New York trade on Tuesday. Earlier it
touched a session high of $856.10.
"It was a pretty quiet morning session, followed by two
movements, one on the downside," Commerzbank senior trader
Michael Kempinski said. "The downside was pretty well supported
and it looks like some funds just jumped in and pushed the price
$20 higher."
"The stock market looks like it is coming off again. We
thought the fear was over, but actually it is not," he added.
U.S. stocks fell at the open, mirroring earlier losses in
Europe and Asia, as investors feared efforts to ease the credit
crisis would not avert a recession. []
European shares slipped earlier, breaking a two-day winning
streak, as the euphoria over bold government action to arrest
the financial sector meltdown dissipated. []
Weakness in equities typically benefits gold, as traders
move from investment in volatile stocks and shares to so-called
'safer' assets such as bullion.
However, uncertainty surrounding the see-sawing equity
markets have led to choppy trading in gold.
Gold was pressured however by a softening in the oil price,
with crude dipping more than $3 at its lowest point on
expectations economic weakness will further cut fuel demand.
[]
Falling crude prices typically weigh on gold, which is often
bought as a hedge against oil-led inflation.
PLATINUM, RHODIUM SLIDE
Among other precious metals, spot silver <XAG=> tumbled 5
percent to a session low of $10.15 an ounce, before settling
back at $10.45/10.53 an ounce against $10.95.
The platinum group metals also fell, with platinum slipping
more than 3 percent and rhodium falling more than 10 percent, as
investors worried over the demand outlook.
Rhodium <RHOD-LON> shed $700 an ounce as investors sold the
precious metal on fears demand from carmakers would fall, and to
raise cash to cover losses on other markets. It was quoted at
$2,500 an ounce against $3,200 an ounce on Tuesday.
Auto manufacturers' association ACEA said European new
vehicle sales fell 8.2 percent in September, and U.S. car sales
have also fallen, recent figures suggest. []
"Car sales are looking grim from everywhere, really, and
that is the major home for the majority of rhodium," said one
British-based trader.
Spot platinum <XPT=> fell to $974.50/994.50 an ounce against
$1,017.50 late in New York on Tuesday.
The world's largest producer of the white metal, Anglo
Platinum <AMSJ.J> told Reuters that it does not plan to trim
metal output despite low prices, which it expects to rebound as
fundamentals return to the fore. []
Spot palladium <XPD=> was quoted at $193.50/201.50 an ounce
against $195.
(Reporting by Jan Harvey; editing by Michael Roddy)
