US gold rises as dlr fall spurs investment demand

NEW YORK, June 2 (Reuters) - U.S. gold futures rose on
Tuesday as a weakening U.S. dollar prompted more investors to
pile into bullion as a hedge against their dollar-denominated
portfolios.

For the latest detailed report, click on [GOL/].

GOLD

* August GCQ9 up $6.70 at $986.70 an ounce at 10:53 a.m.
EDT (1453 GMT) on the COMEX division of the New York Mercantile
Exchange.

* Ranged from $970.50 to $988.30.

* Gold buying increased as the dollar extended Monday's
losses to hit 2009 lows against the euro and a basket of major
currencies.

* Better-than-expected U.S. pending home sales data
increased investor appetite in riskier assets, and that further
weighed on the dollar.

* Investors viewed gold as insurance against the falling
value of their dollar-denominated portfolios. The inverse
relationship between gold and the dollar broke down early this
year as both assets benefited from a flight to safety.

* Strong investment flow into gold boosted prices. Bullion
holdings in SPDR Gold Trust (GLD), the world's biggest
gold-backed exchange-traded fund, climbed 15.27 tonnes to a
record 1,134.03 tonnes as of June 1. [ID:nT205575]

* The Vietnamese government said on Tuesday it would allow
Vietnamese companies that produce gold abroad to import that
gold into Vietnam. [ID:nHAN155233]

* COMEX estimated 10 a.m. volume at 43,716 lots

* Gold/oil ratio at 14.36, slightly higher than the 14.30
of the previous session.

* Spot gold XAU= traded at $984.20 an ounce, up 1 percent
from its late Monday quote in New York.

* London gold fix XAUFIX= $980 an ounce.

SILVER

* July futures SIN9 up 20.5 cents, or 1.3 percent, at
$15.940 an ounce, driven by ETF investment demand.

* Ranged from $15.450 to $16.020.

* COMEX estimated 10 a.m. volume at 13,857 lots

* The holdings of the iShares Silver Trust (SLV) rose
260.36 tonnes from the previous day to a record 8,608.54
tonnes.

* The price of silver will rise further in 2009 following a
sharp rally in May, fueled by a combination of rising investor
interest, recovering industrial demand and flat industry output
- Coeur d'Alene Mines Corp (CDE.N). [ID:nN01546785]

* Spot silver XAG= was at $15.92 an ounce, up 2.1 percent
from its previous finish.

* London silver fix XAGFIX= at $15.62 an ounce.

PLATINUM

* NYMEX July platinum PLN9 up $20.50, or 1.7 percent, at
$1,241.10 an ounce amid economic optimism as U.S. stocks rose
further on Tuesday.

* Platinum rose in spite of General Motors' bankruptcy
filing on Monday, which put the U.S. automaker under government
ownership.

* The potential "overhang" of GM-related platinum selling
has passed. Supply/demand fundamentals rather than technical
issues are expected to determine the direction of platinum
prices - UBS Investment Bank.

* The global car industry accounts for 60 percent of total
platinum demand for use in automobile catalytic converters.

* Spot platinum XPT= at $1,234.00 an ounce, up 2.1
percent from its late Monday quote.

PALLADIUM

* September palladium PAU9 up $7.25, or 3 percent, at
$251.00 an ounce, tracking platinum's gains.

* Spot palladium XPD= was at $246.00 an ounce, up 3.4
percent from its previous finish.
(Reporting by Frank Tang; Editing by Lisa Shumaker)