(Updates prices with TOCOM settlement, adds throughout)
By Maryelle Demongeot
SINGAPORE, May 29 (Reuters) - Gold slipped below $900 an
ounce again on Thursday, under pressure from a stronger U.S.
dollar that helped push oil lower and weakened bullion's appeal
both as an anti-inflation tool and an alternative currency.
Spot gold <XAU=> was quoted at $897.15/898.15 an ounce by
0830 GMT, down from $899.65/901.05 an ounce late 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 more than $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 rose on Thursday, clawing back toward a two-week
high hit in the previous session after better-than-expected
U.S. durable goods orders eased concerns about the U.S.
economic outlook. []
The dollar index <.DXY>, which measures the dollar's value
against a basket of major currencies, was up 0.46 percent to
72.864, after having gained around 0.3 percent on Wednesday.
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 47
cents at $130.56 a barrel on the Globex electronic trading
platform.
Gold tends to move in line with oil prices as dearer crude
boosts bullion's appeal as a hedge against inflation.
"I am expecting a lower gold market on oil prices. But on
the other hand, demand for physical gold will be higher because
of lower spot gold," said Ellison Chu, senior manager at
Standard Bank London in Hong Kong.
"Physical demand was a bit slow last week. But it is better
now with gold prices lower", Chu said, adding that demand from
most Asian buyers, such as Indonesia, was on the rise.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange were down $3.50 an ounce at
$897 an ounce.
The most active Tokyo gold futures contract <0#JAU:> for
April settled up 30 yen at 3,058 yen per gram.
Potentially bringing support to platinum, Jacob Maroga,
chief executive officer of South Africa's state-owned utility
Eskom, said on Thursday the country's electricity crisis would
remain for years and power cuts would continue well into the
future. []
Eskom has struggled to meet domestic electricity demand,
resulting in power cuts which forced mines to halt production
for five days in January.
South Africa has the world's biggest platinum and gold
operations, and tightening supplies have helped carry platinum
prices above 2,000 an ounce this year, up from an average
$1,304 in 2007.
Spot platinum <XPT=> fell to $2,035.50/2,055.50 an ounce
from $2,059/2,079 late in New York.
The most active Tokyo platinum futures <0#JPL:> for April
settled up 13 yen to 6,753 yen per gram, after having settled
down 300 yen, its daily limit, on Wednesday.
Spot silver <XAG=> was steady at $17.42/17.48 an ounce from
$17.37/17.43 an ounce.
Spot palladium <XPD=> was up at $434.50/439.50 an ounce,
from $432/$440.
Precious metals prices at 0830 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 897.15 -2.95 -0.33 7.74
Spot Silver 17.42 0.06 +0.35 17.94
Spot Platinum 2035.50 -23.50 -1.14 33.91
Spot Palladium 434.50 2.00 +0.46 18.07
TOCOM Gold 3058.00 30.00 +0.99 -0.07
35064
TOCOM Platinum 6753.00 13.00 +0.19 26.48
30330
TOCOM Silver 596.40 13.80 +2.37 10.24
867
TOCOM Palladium 1487.00 32.00 +2.20 10.07
1330
Euro/Dollar 1.5562
Dollar/Yen 105.22
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)
