* Safe-haven buying seen; stocks down after stimulus plan
* Platinum rises more than 5 percent to 3-1/2 month high
* SPDR Gold ETF hits fresh record
(Recasts, updates with quotes, closing prices, changes
dateline to NEW YORK, previously LONDON)
By Frank Tang
NEW YORK, Feb 10 (Reuters) - Gold rallied above $910 an
ounce on Tuesday, boosted by flight-to-quality buying as Wall
Street, hoping for more specifics from a long awaited bank
rescue plan, sold stocks and other assets.
Bullion rose further after the U.S. Treasury unveiled a
revamped massive financial rescue plan to cleanse bad assets
from banks and support new lending through an expanded Federal
Reserve program. []
Bill O'Neill, managing partner of LOGIC Advisors, said that
the new U.S. stimulus plan would not alter the potential
long-term inflationary expectations related to massive
liquidity injections by central banks.
"It hasn't alleviated the concerns that are already
existing. There is going to be very much of a wait-and-see
attitude to it, and that's bullish for gold," O'Neill said.
Spot gold <XAU=> was at $914.60 an ounce at 2:18 p.m. EST
(1918 GMT), up 2.2 percent from the last trade $895.00 late in
New York on Monday. Earlier, it touched a high of $914.65.
U.S. gold futures for April delivery <GCJ9> settled up
$21.40, or 2.4 percent, at $914.20 an ounce on the COMEX
division of the New York Mercantile Exchange.
Analysts say the plan could result in increased debt
supply, stirring inflation fears, which would be positive for
bullion, and in the short term could boost commodities as an
asset class.
"You are going to have a gold rally. Gold is not subject to
the fiat of any type of paper asset or currency that is issued
by a given government," said Frank McGhee, head precious metals
trader of Integrated Brokerage Services.
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 Feb. 9.
Rising ETF investment has taken up some of the slack caused
by weaker jewelry demand in recent weeks. Indian buyers were
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.
The platinum group metals, which are more widely used as an
industrial commodity compared to gold, have been supported by
expectations of the U.S. economic stimulus plan.
Platinum was last at $1,027.00 an ounce, up 4.0 percent
from its last finish of $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 in early sessions. It was at
$211.00 an ounce, up 3.0 percent from its previous close $205
on Monday. Silver <XAG=> was at $13.18 an ounce, up 2.7 percent
from its previous close of $12.83.
(Reporting by Frank Tang; Editing by Marguerita Choy)
