* Gold consolidates after record high as dollar rises
* South African gold output falls; scrap supply picks up
* Palladium, platinum, rhodium hit highest in over a year
(Recasts, updates comments, closing prices, market activity,
adds NEW YORK to dateline)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Nov 12 (Reuters) - Gold closed lower on
Thursday, retreating from a record high after the dollar rose
broadly on doubts of a lasting economic recovery.
Spot gold hit a record $1,122.85 an ounce in Asian trade,
helping lift other precious metals, with palladium, platinum
and rhodium all reaching their highest in more than a year.
Bullion is viewed as a hedge against a falling U.S.
currency. Peter Buchanan, commodities analyst at CIBC, said
expectations of dollar depreciation has been a large factor
driving gold higher.
"Gold's weakness (on Thursday) was a reflection of profit
taking after the metal's recent impressive run," Buchanan
said.
Spot gold <XAU=> was at $1,107.20 an ounce at 2:51 p.m. EDT
(1951 GMT), down from $1,117.45 late in New York on Wednesday.
U.S. December gold <GCZ9> settled down $8 at $1,106.60 an
ounce in the COMEX division on the NYMEX.
The dollar index <.DXY> rose after U.S. weekly jobless
claims came in lower than expected. Data showed initial state
jobless benefit claims fell to 502,000 in the latest week from
a revised 514,000 a week before. [] []
But overall the dollar remained vulnerable to further
losses, analysts said.
Tobias Merath, head of commodity research at Credit Suisse,
said a weekly close above the $1,100 for gold would be
important.
"We see continuous inflows from financial investors almost
on a daily basis, real interest rates are still lower and the
dollar is weakening, so the three pillars of this gold rally
are still in place," he said.
S.AFRICA OUTPUT DROPS
South Africa, formerly the world's biggest gold producer
and now number three, said its gold output dropped 9.3 percent
in volume terms in September. []
Sales of scrap gold are increasing in India, the world's
biggest bullion consumer last year, dealers said, as higher
prices encourage consumers to sell gold back to the market.
[]
Demand for gold in India remained weak, with some traders
waiting for prices to soften before placing fresh orders in the
middle of the wedding season, which will last until December.
The chief executive of Barrick Gold Corp <ABX.TO>, the
world's biggest gold miner, told the Financial Times gold may
ease from current highs, although the chances of prices falling
below $900 an ounce are slim. []
Among other precious metals, spot silver <XAG=> was at
$17.51 an ounce against $17.57, tracking gold.
Palladium, platinum and rhodium all hit their highest level
in more than a year on a wave of speculative buying of the
precious metals used in autocatalysts.
Palladium reached its highest since August 2008 at $356.75
an ounce, while platinum struck a 14-month high of $1,379 in
early trade. Later platinum <XPT=> eased to $1,353 from $1,368,
while palladium <XPD=> rose to $349.50 from $341.50.
"A lot of people think PGMs could outperform gold," said
Calyon metals analyst Robin Bhar. "People are playing the
recovery hopes for autocatalyst demand."
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 1106.60 -8 -0.7 884.3 25.1
US silver <SIZ9> 17.265 -0.272 -1.6 11.295 52.9
US platinum <PLF0> 1363.20 -6.40 -0.5 941.50 44.8
US palladium <PAZ9> 350.90 5.50 1.6 188.70 86.0
Prices at 2:37 p.m. EST (1937 GMT)
Gold <XAU=> 1108.30 -9.15 -0.8 878.20 26.2
Silver <XAG=> 17.33 -0.24 -1.4 11.30 53.4
Platinum <XPT=> 1354.00 -14.00 -1.0 924.50 46.5
Palladium <XPD=> 348.50 7.000 2.0 184.50 88.9
Gold Fix <XAUFIX=> 1114.75 -1.25 -0.1 836.50 33.3
Silver Fix <XAGFIX=> 17.51 -12.00 -0.7 14.76 18.6
Platinum Fix <XPTFIX=> 1365.00 2.00 0.1 1529 -10.7
Palladium Fix<XPDFIX=> 354.50 3.50 1.0 365.0 -2.9
(Reporting by Frank Tang; Editing by David Gregorio)
