* Bullish outlook drives PGMs to highs for 2nd session
* Further gains checked by weak Asian stocks
* Coming up: U.S. PPI/core PPI for March at 1230 GMT
By Chikako Mogi
TOKYO, April 22 (Reuters) - Platinum group metals (PGM) rose
to their highest levels in about two years on Thursday, reversing
earlier declines as investor buying emerged on expectations that
healthy auto sales underline bullish fundamentals.
Gold held steady as investors were wary of fallout from fraud
charges against Goldman Sachs Group Inc <GS.N>, a leading
commodities player, and concerns over Greece's debt problems.
The market is awaiting an annual industry report for PGMs,
mostly consumed by the auto industry and the jewellery sector, by
respected metals consultant GFMS Ltd due later in the day.
"We don't see a shortage of supply right now. But the outlook
of PGMs' fundamentals are bullish this year and that view has
been drawing investment money into PGMs," said a manager at a
Japanese trading firm.
"Such money flows would not halt so easily," the manager
said, adding that Japanese investors are among current buyers.
But Thursday's weakness in global stock markets was casting
shadow over the glitter of PGMs, and price gains were somewhat
limited by profit-taking, analysts said.
Spot palladium <XPD=> rose 0.4 percent to $565.50 an ounce
after rising as high as $569, its highest since March 2008.
Spot platinum <XPT=> was up 0.9 percent at $1,747 an ounce
after rising as high as $1,750.50, its highest since July 2008.
Spot gold <XAU=> was steady at $1,147.15 an ounce as of 0620
GMT, compared to late New York levels of $1,145.30.
U.S. gold futures for June delivery <GCM0> were down 0.1
percent at $1,148 per ounce compared to $1,148.80 an ounce on the
COMEX division of the NYMEX.
For a technical analysis of the spot gold price click
[]
Asian stocks fell on Thursday as several major U.S. firms
issued disappointing profit outlooks, casting doubt on the
strength of the global recovery, and as investors grew impatient
for action on Greece's debt crisis, which weighed on the euro.
[]
The pound, helped by upbeat data the previous day, hit a
two-month peak against the euro, which at $1.3380 <EUR=> was also
in a bearish tone, slipping towards March's 10-month low against
the dollar at $1.3267. []
Kazuhiko Saito, chief analyst at Tokyo's Fujitomi Co, said he
would be closely watching a speech by President Barack Obama
later on Thursday for comments on U.S. regulations.
White House spokesman Robert Gibbs said on Wednesday that
Obama will mention derivatives in his speech, though that would
not be the focus of his remarks. []
A German state bank said it had severed business ties with
Goldman Sachs, citing U.S. regulators' allegation that the
dominant Wall Street bank committed fraud, while France eyed an
investigation of its own. []
Investment flows have paused, with holdings at the world's
largest gold-backed exchange-traded fund, the SPDR Gold Trust
<GLD>, staying at a record 1,141.041 tonnes as of April 21,
unchanged since first hitting this level on April 9. []
Precious metals prices at 0613 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1146.15 0.85 0.07 4.60
Spot Silver 18.08 0.05 0.28 7.43
Spot Platinum 1746.50 15.50 0.90 19.05
Spot Palladium 568.00 5.00 0.89 40.07
TOCOM Gold 3433 -10.00 -0.29 5.34 36343
TOCOM Platinum 5211 42.00 0.81 18.95 23941
TOCOM Silver 54 0.20 0.37 5.22 467
TOCOM Palladium 1689 32.00 1.93 44.98 1783
Euro/Dollar 1.3391
Dollar/Yen 92.8400
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Additional reporting by Risa Maeda; Editing by Michael Watson)
