* Gold futures rally above $980 on safe-haven demand
* New regulations on energies boost inflows to gold
* Platinum prices slip to four-week low below $1,200/oz
(Recasts, updates prices, comments, market activity)
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.
Traders said that inflows related to closures of energies and
other commodities exchange-traded products (ETNs) amid increased U.S.
regulatory scrutiny also prompted stepped-up buying in the metal.
U.S. December gold futures <GCZ9> settled up $22, or 2.3 percent,
at $978.50 an ounce on the COMEX division of the New York Mercantile
Exchange.
December hit a session high of $981.40, the loftiest price since
June 5. Wednesday's rally also marked the biggest one-day percentage
gain since March 19 -- when it surged nearly 8 percent.
Spot gold <XAU=> was at $976.65 an ounce at 3:07 p.m. EDT (2007
GMT), up from $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, bullion rose as the S&P 500 index lost 2.2 percent on
worries about banks and financial markets.
"There is an element of safe-haven buying coming in. The worry is
about the financial sector and the slowdown of equity demand -- they
have made the (financial) market uncertain," said James Steel, chief
commodities analyst at HSBC in New York.
Dollar weakness also made gold more attractive to non-U.S.
investors, 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.
COMEX floor traders said that gold's rally was driven 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.
NEW REGULATIONS BOOST INFLOWS
The Commodity Futures Trading Commission, the U.S. futures market
regulator, aims to enhance transparency in the commodity markets,
enforce position limits, and limit speculation in energy and
commodity trading.
Deutsche bank said on Tuesday it would redeem all of its most
bullish oil ETPs as the U.S. regulator moves to curb speculation in
commodities markets. []
Last week, Barclays said it temporarily suspended new shares
creation of its iShares S&P GSCI trust. []
New regulations on how many futures contracts hedge funds,
investment banks and other speculators can control could be in place
by late October or November.
Oil prices settled unchanged at 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.
Among other precious metals, silver rebounded on gold's ride
higher, rising to $15.35 per ounce <XAG=> against $15.04 late on
Tuesday in New York. Silver also rose to its highest price since
mid-June.
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 $1,229 an ounce compared with late
Tuesday's $1,224.50, while palladium <XPD=> fell to $284.50 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)
Close Change Pct 2008 YTD
Chg Close Pct Chg
US gold <GCZ9> 978.50 22.00 2.3 884.30 10.7
US silver <SIZ9> 15.365 0.305 2.0 11.295 36.0
US platinum <PLV9> 1230.10 3.30 0.3 941.50 30.7
US palladium <PAZ9> 288.95 -0.50 -0.2 188.70 53.1
Prices at 3:07 p.m. EDT (1907 GMT)
Gold <XAU=> 976.75 20.90 2.2 878.200 11.2
Silver <XAG=> 15.35 0.31 2.1 11.30 35.8
Platinum <XPT=> 1229.00 4.50 0.4 924.50 32.9
Palladium <XPD=> 284.50 -2.50 -0.9 184.50 54.2
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=> 1210.00 0.00 0.0 1529.00 -20.9
Palladium Fix <XPDFIX=> 283.00 0.00 0.0 365.00 -22.5
