(Updates prices, adds closing in Tokyo)
By Lewa Pardomuan
SINGAPORE, March 5 (Reuters) - Gold rose on Wednesday as
bargain hunters resurfaced after a drop the previous day, while
supply fears helped platinum stay near an all-time high.
Gold XAU= climbed to $965.40/966.20 an ounce from
$963.20/964.00 late in New York on Tuesday, when it dropped
nearly 2 percent after a reversal in oil prices sparked heavy
selling from speculators.
Though gold remained below Monday's record of $989.30,
analysts said the metal was still on track to hit $1,000 with
oil hovering near an all-time high and the dollar's appeal
declining on expectations of more interest rate cuts in the
United States.
"The outlook for gold is obviously subject to uncertainty,"
said David Moore, an analyst at Commonwealth Bank of Australia
in Sydney, referring to Tuesday's sharp drop to as low as
$960.40.
"In my opinion, though, it is quite likely we'll see $1,000
an ounce at a certain point in coming months. Probably, this
morning, you just saw people taking advantage of the dip in
prices last night."
Oil CLc1 regained $100 a barrel on Wednesday after
falling almost $3 a barrel the previous day, aided by
expectations that OPEC would decide to hold output steady at
its meeting. [ID:nSP39269]
Firm oil prices lift gold's appeal as a hedge against
inflation.
Gold was previously fixed at a record high of $850 in
January 1980 as high inflation linked to strong oil prices,
Soviet intervention in Afghanistan and the impact of the
Iranian revolution sparked heavy buying from investors.
After adjusting for inflation, the 1980 high was $2,119.30
an ounce at 2007 prices, while the real average price in 1980
has been calculated at $1,532.14, according to precious metals
consultancy GFMS Ltd.
In the physical sector, gold's fall from record highs
spurred buying by jewellers in Asia, while the marriage season
in India, the world's largest bullion consumer, helped the
local market. [ID:nSP23009]
"Gold will try the lower end first and then see whether it
can hold. If not, it will try the major support of $950," said
Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
"The upside seems to be capped at $970. We are expecting
some correction," said Leung.
Spot platinum XPT= rose to $2,235/2,242 an ounce from
$2,220/2,230 an ounce, holding near Tuesday's record high of
$2,290 on persistent supply fears after a power crisis
disrupted mining in main producer South Africa.
The most active platinum futures in Tokyo Commodity
Exchange <0#JPL:> rebounded from lows to end 53 yen per gram
higher at 7,327 yen.
Spot palladium XPD= rose to $548/553 an ounce from
$545/550 an ounce, having reached a 6-1/2-year high of $590 on
Tuesday.
Silver XAG= edged down to $19.62/19.67 an ounce from
$19.71/19.76 an ounce -- off Monday's 27-year high at $20.60 an
ounce.
Gold futures for April delivery GCJ8 on the COMEX
division of the New York Mercantile Exchange added $0.4 an
ounce to $966.7 an ounce, off the record high of $992.00 hit
Monday.
Precious metals prices at 0844 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 964.70 1.10 +0.11 15.85
Spot Silver 19.62 -0.12 -0.61 32.84
Spot Platinum 2235.00 15.00 +0.68 47.04
Spot Palladium 548.00 3.00 +0.55 48.91
TOCOM Gold 3245.00 -43.00 -1.31 6.05
72341
TOCOM Platinum 7327.00 53.00 +0.73 37.24
33314
TOCOM Silver 660.00 -19.00 -2.80 22.00
2070
TOCOM Palladium 1951.00 -100.00 -4.88 44.41
20441
Euro/Dollar 1.5158
Dollar/Yen 103.66
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
