* Markets await U.S. stimulus, bank rescue plans
* SPDR Gold ETF hits fresh record
* Platinum rises more than 5 percent to 3-1/2 month high
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By Jan Harvey
LONDON, Feb 10 (Reuters) - Gold firmed 2 percent on Tuesday
as gains in other commodities such as oil, platinum and
palladium and safe haven demand pushed it through the $900 mark.
Traders are awaiting details of a major economic stimulus
plan due to be announced in the United States later in the
session, which is likely to have a significant impact on the
markets.
Spot gold <XAU=> was quoted at $911.00/912.60 an ounce at
1418 GMT, against $895.00 an ounce late in New York on Monday.
Earlier it touched a high of $914.65.
U.S. gold futures for April <GCJ9> delivery on the COMEX
division of the New York Mercantile Exchange rose $20.10 to
$912.50 an ounce.
"The action on the market today is not to do with the
fundamentals of gold, but more to do with the action on the
platinum and palladium side, and technical improvement," said
Commerzbank analyst Eugen Weinberg.
"Throughout the day it has been testing the $900 mark and as
soon as it broke it there was an impulse to the upside."
The platinum group metals, which are more widely used in
industry than gold, have been supported by expectations of the
U.S. economic stimulus plan.
The Obama administration's more than $800 billion stimulus
package is expected to be passed by the Senate later this
session, while U.S. Treasury Secretary Timothy Geithner is due
to unveil a plan to rescue stricken banks at 1600 GMT.
Its impact on the gold market will be closely watched.
Analysts say passing the stimulus plan could result in an
increased supply of debt via U.S. government bonds, which could
cap gold prices.
U.S. Treasury debt yields have risen as the market has
braced itself for an increase in supply of bonds.
"Traditional monetary theory implies that gold is likely to
trade inversely with Treasury yields," HSBC analyst James Steel
said in a note.
"Higher interest rates raise the opportunity cost of owning
gold and reduce bullion's relative attractiveness in comparison
to interest-bearing instruments."
However, the stimulus plan could also raise fears over
inflation, which would be positive for bullion, and in the short
term could boost commodities as an asset class.
OIL FIRMS
Among other commodities, oil prices firmed nearly 5 percent,
lifted by expectations the stimulus plan could boost demand.
Meanwhile the euro recovered from lows against the dollar,
also helping the precious metals. A stronger dollar against the
euro typically weighs on gold, which is often bought as a hedge
against weakness in the U.S. currency.
The U.S. currency gained broadly earlier in the session as
investors sought the perceived safety of the U.S. currency
before the government announces a plan to shore up its ailing
banking sector.
Investment demand for gold is supporting the precious metal.
The world's largest exchange-traded fund, the SPDR Gold Trust
<GLD>, said its holdings rose to a record 881.87 tonnes on
February 9.
Rising ETF investment has taken up some of the slack caused
by weaker jewellery demand in recent weeks. Indian buyers are
awaiting a fall in prices before making purchases, dealers said.
Among other precious metals, platinum <XPT=> rose 5 percent
to a 3-1/2 month high of $1,039.50 an ounce, boosted by talk of
buying by a European carmaker, as well as fund buying and
interest in platinum-backed ETFs.
Later it was quoted at $1,031.50/1,036.50 an ounce, against
$988 late in New York on Monday.
Investors are also turning their attention to the outlook
for supply, after recent focus on falling demand.
"The announcement of Anglo Platinum yesterday that they may
lay off as much as 10,000 people was seen as bullish," said one
trader.
South Africa, source of 80 percent of the world's platinum,
expects the metal price downturn to worsen, hitting the economy
through capital flight and job losses, Minerals and Energy
Minister Buyelwa Sonjica said.
Among other precious metals, palladium <XPD=> climbed to a
near three-month high of $216 and was later at $213/217 an ounce
from $205. Silver <XAG=> was at $13.15/13.21 against $12.83.
(Reporting by Jan Harvey; Editing by Peter Blackburn)
