* Gold hits another 11-month low on rising dollar
* Platinum strikes lowest level since January 2007
(Updates prices)
SINGAPORE, Sept 11 (Reuters) - Gold extended losses on
Thursday and dropped to its weakest since October 2007 after
the dollar rallied to a 1-year high against the euro, prompting
selling from investors.
Investors, who propelled gold to a lifetime high of
$1,030.80 in March on inflation fears and a struggling dollar,
are ditching their bullion holdings after the U.S. currency
staged a dramatic rebound. Other precious metals were at
multi-month lows.
Gold <XAU=> hit an intraday low of $748.60 an ounce, down
0.5 percent from $752.55/754.15 an ounce late in New York on
Wednesday, before rebounding to $754.10/755.15 an ounce.
"Investor interest has diminished because of the movement
of the U.S. dollar and the oil price," said David Moore,
analyst at Commonwealth Bank of Australia in Sydney.
"There's some evidence of increasing fabrication demand for
gold at this level, so that might be supportive. But at the
moment, of course the shift in investment flow is overwhelming
that influence," he said.
Gold has dropped around 6 percent in the last two days --
the biggest two day-drop since March.
The euro tumbled to its lowest level in a year against the
dollar on Thursday as the market focus returned to a souring
economic outlook outside the United States. []
In theory, a stronger dollar reduce gold's appeal as an
alternative investment. The bullion holdings of SPDR Gold Trust
<GLD.P>, the world's largest gold-backed exchange-traded fund,
dropped to their lowestlevel in three months around 614 tonnes
<XAUEXT-NYS-TT>.
Oil <CLc1> edged up to around $103 a barrel on Thursday,
having fallen the previous day as a strong dollar offset a
surprise OPEC production cut and data on rising U.S. crude
stocks. []
The benchmark gold contract on the Tokyo Commodity
Exchange, August 2009 <JAUc6>, fell 74 yen per gram to 2,616
yen per gram.
Spot platinum <XPT=> fell to $1,156.00/1,176.00 an ounce
from $1,176.00/1,196.00 late in New York. It hit an intraday
low of $1,150.50 an ounce, its weakest since January 2007.
Platinum, which hit record high of $2,290 an ounce in
March, has been hit by heavy selling due to a slowing U.S.
economy and poor car sales in the United States, Japan and
China. The metal is mainly used in autocatalysts.
New York gold futures <GCZ8> fell $4.0 to $758.4 an ounce.
Precious metals prices at 0131 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 754.05 2.05 +0.27 -9.45
Spot Silver 10.69 0.06 +0.56 -27.62
Spot Platinum 1156.00 -14.00 -1.20 -23.95
Spot Palladium 219.50 -5.50 -2.44 -40.35
TOCOM Gold 2621.00 -69.00 -2.57 -14.35
24275
TOCOM Platinum 3984.00 -160.00 -3.86 -25.38
9513
TOCOM Silver 371.90 -20.20 -5.15 -31.26
495
TOCOM Palladium 766.00 -24.00 -3.04 -43.30
764
Euro/Dollar 1.3954
Dollar/Yen 107.45
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by)
