* Gold falls from 1-week high on falling euro, weak oil
* Oil tumbles below $34 a barrel; stocks may weigh
* Platinum also tracks oil lower
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Jan 20 (Reuters) - Gold slipped almost 1 percent
on Tuesday after rallying to a one-week high the previous day,
as a weaker euro and falling crude oil prices prompted
investors to book profits.
Platinum also fell from a one-week high to track gold
prices, but the metal has bounced almost 30 percent since
tumbling to a five-year low around $730 an ounce in late
October, partly driven by purchases by Japanese investors.
Gold <XAU=> was trading at $828.60 an ounce, down $5.59
from late trade on Monday, when it rose as high as $845.55 in
volatile trade. U.S. markets reopen on Tuesday after Martin
Luther King holiday.
"The U.S. dollar might pop up due to optimism surrounding
the swearing in of U.S. President-elect Barack Obama later
today," said Pradeep Unni, an analyst atRichcomm Global
Services. "This might curtail any recovery in gold."
"Oil has certainly been instrumental in dragging gold
lower. However the dollar's strength is the key factor," he
said.
Barack Obama takes over as U.S. President on Tuesday with
hopes riding high he can conjure up a rescue that will jolt the
world's biggest economy back to life and contain the financial
crisis ravaging global markets. []
The euro <EUR=> extended falls following a ratings
downgrade of Spain by Standard & Poor's, grim economic
forecasts from the European Commission and a worsening outlook
for the financial sector after Royal Bank of Scotland unveiled
its biggest loss in UK corporate history. []
The euro fell to $1.3012 <EUR=> after touching a six-week
low of $1.2988 on trading platform EBS. []
Oil extended losses below $34 a barrel on Tuesday, after
Russia and Ukraine signed a gas deal that would help secure
supplies to Europe, while no improvement was in sight for oil
demand. []
Bullion dropped to a one-month trough around $801 last week
on a falling euro and stock markets, but the decline also
spurred buying from jewellers ahead of the Lunar New Year next
week.
"It could have gotten a bit positive after gold neared the
$850 regions but it looks like we are back down again on a
weaker euro and pound," said Adrian Koh, analyst at Phillip
Futures in Singapore, referring to a high seen last week.
"It's pretty much currency driven today. I think
yesterday's rise was a bit of follow through from the sharp
rally in the previous day. And traders as well as investors
probably stopped short at key resistance levels."
Falling stock markets could weigh on gold, with the Nikkei
<> and Asian stocks outside outside Japan <.MIAPJ0000PUS>
both sliding more than 2 percent. []
Platinum <XPT=> was trading at $943.00 an ounce, down $5.50
from Monday's late trade. The metal has attracted buying from
bargain hunting in Asia, with prices now trading more than 50
percent below a record above $2,200 struck last March.
"Platinum is a bit more positive than gold, possibly because
it did dip to almost par levels as compared to gold and
industry players were buying on its relative cheapness," said
Koh of Phillip Futures.
New York gold futures <GCZ9> fell $10.3 an ounce to $829.6
in electronic trade.
Precious metals prices at 0612 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 828.60 -5.95 -0.71 -0.49
Spot Silver 11.05 -0.08 -0.72 -25.19
Spot Platinum 943.00 -5.50 -0.58 -37.96
Spot Palladium 180.00 -3.00 -1.64 -51.09
TOCOM Gold 2420.00 -40.00 -1.63 -20.92
32652
TOCOM Platinum 2757.00 -48.00 -1.71 -48.36
8617
TOCOM Silver 318.50 -6.00 -1.85 -41.13
194
TOCOM Palladium 535.00 -2.00 -0.37 -60.40
191
Euro/Dollar 1.3016
Dollar/Yen 90.33
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
