* Gold futures rally above $980 on strong investor demand
* US jobs data fuels economic jitters, boosts gold
* Platinum prices slip to four-week low below $1,200/oz
(Recasts, updates prices, market activity, adds second byline,
dateline, previously LONDON)
By Frank Tang and Jan Harvey
NEW YORK/LONDON, Sept 2 (Reuters) - Gold futures rallied
above $980 an ounce on Wednesday to hit their highest price in
almost three months, as investors sought refuge from global
equities losses and financial market uncertainty.
Dollar weakness also made gold more attractive to non-U.S.
investors, traders said, while the move through pivotal
technical resistance levels triggered heavy buying.
"In the mid to long term, gold is definitely a buy --
especially if you have lost trust in stocks, or expect a
down-move there," Commerzbank senior trader Michael Kempinski
said.
U.S. gold futures for December delivery <GCZ9> on the COMEX
division of the New York Mercantile Exchange was up $23, or 2.4
percent, at $979.50 at 1:19 p.m. EDT (1719 GMT). December hit a
session high of $981.40, the highest price since June 5.
Spot gold <XAU=> was at $977.10 an ounce, compared with
$955.85 an ounce late in New York on Tuesday..
Gold had been rising along with the stock market as
economic optimism bolstered bullion's appeal as an inflation
hedge. But on Tuesday, the metal benefited from inflows related
to losses in the equities market, as the S&P 500 index lost 2.2
percent on worries about financial companies.
Jonathan Jossen, a COMEX gold options floor trader, said
gold's rally was driven largely by pent-up demand, as the
metal's prices had largely been stuck in a trading range.
World share prices measured by MSCI's all-country index
fell 0.5 percent <.MIWD00000PUS> as investors worried whether
stock markets could sustain this year's rally.
The dollar index <.DXY>, which measures the U.S. unit's
performance against a basket of major currencies, weakened
after data showed U.S. private employers cut 298,000 jobs in
August, fewer than a revised 360,000 jobs in July.
But the stronger-than-expected jobs number failed to ease
investor concerns about broader market sentiment.
COILED FOR A BREAKOUT?
Oil prices eased, trading below at $68 a barrel following
Tuesday's hefty 3 percent slide.
INTL Commodities' head of precious metals Gerry Schubert
said gold and silver prices had held up well given oil's slide
below $70 a barrel, with the market also looking well supported
on a technical basis.
"We have a lack of selling for gold and silver, and
probably even some light ETF investment buying," he said.
Among other precious metals, silver rebounded on gold's
ride higher, rising to $15.34 per ounce <XAG=> -- its highest
since mid-June -- against $15.04 late on Tuesday in New York.
Platinum <XPT=> fell to a four-week low of $1,197 an ounce
as investors worried about the demand outlook, with a spate of
government-sponsored scrappage schemes that had supported car
sales nearing an end.
The white metal was at $1,225 an ounce compared with late
Tuesday's $1,224.50, while palladium <XPD=> fell to $285 from
its previous finish of $287. Both metals are being pressured
by profit taking and a dearth of news on South African strikes,
analysts said. []
(Additional reporting by Veronica Brown in London; Editing
by David Gregorio)
Prices at 1:21 p.m. CDT (1721 GMT)
Last Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 978.90 22.40 2.3 884.30 10.7
US silver <SIZ9> 15.375 0.315 2.1 11.295 36.1
US platinum <PLV9> 1230.00 3.20 0.3 941.50 30.6
US palladium <PAZ9> 288.45 -0.50 -0.2 188.70 52.9
Gold <XAU=> 976.90 21.05 2.2 878.200 11.2
Silver <XAG=> 15.32 0.28 1.9 11.30 35.6
Platinum <XPT=> 1227.50 3.00 0.2 924.50 32.8
Palladium <XPD=> 284.00 -3.00 -1.0 184.50 53.9
Gold Fix <XAUFIX=> 964.75 9.75 1.0 836.50 15.3
Silver Fix <XAGFIX=> 14.910 0.170 1.2 14.760 1.0
Platinum Fix <XPTFIX=> 1234.00 0.00 0.0 1529.00 -19.3
Palladium Fix <XPDFIX=> 289.00 0.00 0.0 365.00 -20.8
