* Platinum off 6-month low on bargain hunting
* Gold firmer but weaker oil caps gains
* Bullion ETF at 1-month low
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Aug 6 (Reuters) - Speculators flocked into
platinum on Wednesday after prices tumbled to a six-month low
the previous day, while gold dropped to its lowest level in
seven weeks before bargain hunters resurfaced.
But worries about falling demand for autocatalysts and poor
car sales capped gains in platinum. Gold was under pressure
from weak oil as well as a rising U.S. dollar, which prompted
investors to ditch bullion exchange-traded funds.
Spot platinum <XPT=> hit a high of $1,582.50 ounce, up from
$1,563.00/1,583.00 late in New York on Tuesday, when it hit an
intraday low of $1,517 an ounce, its weakest since Jan. 22.
"Technical-wise, it's oversold. I do believe we will see
some relief buying within the next one week," said William
Kwan, bullion director at Gold Capital Management in Singapore.
Platinum prices have taken a dramatic turn since spiking to
a record high above $2,000 an ounce in early March, losing much
of their gains to profit taking and a slowing U.S. economy that
threatens to slash demand for autocatalysts.
"Investors or speculators have entered the market. But at
this moment, buying is not big," said Yukuji Sonoda, analyst at
Daiichi Commodities in Tokyo.
"Anyway, platinum prices have decreased so much, so anytime
automobile companies change their minds, they will start to buy
little by little," he said.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange rose 141 yen
per gram to 5,467 yen after tumbling by the 300 yen daily limit
the previous day.
In industry news, miner Xstrata <XTA.L> is seeking to buy
more shares in takeover target Lonmin <LMI.L> on the market on
Wednesday after releasing plans for a $10 billion cash offer.
[]
Gold <XAU=> rose to $883.40/884.50 an ounce from
$876.35/877.95 late in New York. It hit an intraday low of
$872.35 an ounce on Wednesday, its lowest level since June 16.
A combination of short covering and bargain hunting lifted
the price of gold, but a recent sell off in other commodities
rattled the nerves of many. Dealers pegged key support at $850.
"Market participants who are still long might be looking
for an opportunity to offload their positions that are above
$900," said Kwan of Gold Capital Management.
"Any spike towards $900 will be met by selling pressure
from those who want to get out of their stale positions."
The bullion holdings of SPDR Gold Trust <GLD.P>, the
world's largest gold-backed exchange-traded fund, dropped to a
one-month low around 659 tonnes, down from a historic high
around 705 tonnes in mid-July. <XAUEXT-NYS-TT>.
The dollar touched a seven-week high against the yen on
lower oil, which helped offset any disappointment the market
may have felt over the slightly diminished prospects of an
interest rate hike by the Federal Reserve. []
New York gold futures <GCZ8> added $5.7 to $891.80 an
ounce.
Spot palladium <XPD=> rose to $355.00/360.00 an ounce from
$346.00/354.00 in New York -- off an eight month low of $340.
Silver <XAG=> edged up to $16.65/16.71 an ounce from
$16.45/16.53 late in New York. Precious metals prices at 0731
GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 883.80 10.55 +1.21 6.14
Spot Silver 16.65 0.25 +1.52 12.73
Spot Platinum 1573.50 10.50 +0.67 3.52
Spot Palladium 355.00 9.00 +2.60 -3.53
TOCOM Gold 3105.00 7.00 +0.23 1.47
55849
TOCOM Platinum 5466.00 140.00 +2.63 2.38
24976
TOCOM Silver 586.80 0.60 +0.10 8.47
1314
TOCOM Palladium 1264.00 46.00 +3.78 -6.44
1198
Euro/Dollar 1.5504
Dollar/Yen 108.35
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
