* Spot gold extends late Thurs gains to $914
* U.S. futures jump 5 pct in electronic trade
* Nikkei plunges more than 11 percent, oil hits 1-year low
(Updates prices, adds quotes, details)
By Lewa Pardomuan
SINGAPORE, Oct 10 (Reuters) - U.S. gold futures leapt and
spot gold rose to an over two-month high on Friday, adding to a
late rally a day ago as investors frantically searched for
assets that might be safe havens after heavy losses in equity
markets.
Gold drew renewed interest from investors seeking some
security as the month-old financial crisis doled out more
punishment, with Japan's Nikkei <N.225> tumbling more than 11
percent, poised for its biggest one-day drop since the 1987
crash, on fears that a global recession was now unavoidable.
Spot gold <XAU=> rose $2.50 or 0.27 percent to $914 an
ounce from New York's notional 2115 GMT close, its fifth day of
gains, at one point hitting $925.05, its highest since July 31.
It is now just 11 percent off its all-time peak of $1,030.80 in
March.
The gold futures contract for December delivery <GCZ8> on
the COMEX division of the New York Mercantile Exchange, which
missed out much of Thursday's late rally as the U.S. Dow
collapsed by 7.3 percent in an avalanche of selling at the
close, rallied to high of $931.3 an ounce before easing back to
$916.9 an ounce.
"Investors only concentrate on gold. Stock prices and other
commodities are not so good," said Yukuji Sonoda, precious
metals analyst at Daiichi Commodities in Tokyo.
"The next target for gold is $930. Next week, I do hope
$940 and $950 will be tested," said Sonoda, adding that an
increase in ETF holdings showed growing interest from
investors.
Gold traded around $930 and $940 in July, having softened
from its record high in March when investors rushed to buy gold
on a falling U.S. dollar and deepening U.S. financial troubles.
Although the financial turmoil has intensified over the
past month, the U.S. dollar has risen against the euro as
investors fear the U.S. woes will spread quickly to the rest of
the world, tempering the gains for bullioon, traders say.
But demand from individual investors remains robust, with
holdings by the world's largest gold-backed exchange-traded
fund, the SPDR Gold Trust <GLD>, rising by nearly two tonnes to
another record at 765.74 tonnes as of Thursday.
For details on SPDR holdings, click on
http://www.exchangetradedgold.com/iframes/usa.php
"I think a lot of people will be speculating about $1,000
gold again, and I personally think its not very far away," said
Adrian Koh, analyst at Phillip Futures in Singapore.
U.S. crude oil futures <CLc1> fell about 3 percent to a
fresh 12-month low on Friday on concerns the growing global
financial crisis would send demand for fuel slumping. []
Asia stocks dropped sharply, with Japan's Nikkei plunging
11 percent, while the yen rose on growing fears that no
government effort so far has rejuvenated credit markets or kept
the global economy from a path to recession. []
For more stories on the growing global financial crisis, cl
ick on []
Platinum <XPT=> was trading at $999.50 ounce, down $19.00
an ounce from New York's notional close, having hit a 1-week
high of $1,026.50 on Wednesday, partly driven by recent gains
in gold.
Some dealers said buying interest from investors helped
pluck platinum from a near-three year low hit last week, but
dismal car sales that threatened to cut demand for autocalysts
were likely to cap gains.
Precious metals prices at 0215 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 908.85 -2.65 -0.29 9.14
Spot Silver 12.16 0.15 +1.25 -17.67
Spot Platinum 999.50 -19.00 -1.87 -34.24
Spot Palladium 197.00 -1.00 -0.51 -46.47
TOCOM Gold 2893.00 10.00 +0.35 -5.46
20662
TOCOM Platinum 3181.00 -76.00 -2.33 -40.42
7680
TOCOM Silver 383.90 9.40 +2.51 -29.04
598
TOCOM Palladium 653.00 -7.00 -1.06 -51.67
246
Euro/Dollar 1.3567
Dollar/Yen 99.05
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda in Tokyo)
(Editing by )
