May 9, 2013 / 11:06 AM / 7 years ago

PRECIOUS-Gold down 1 pct on broad dollar rally; PGMs higher

* Dollar surges above 100 yen, rises sharply vs euro
    * US weekly jobless claims lowest since January 2008
    * PGM up ahead of South Africa wage talks, Amplats plan

 (New updates throughout, adds market details)
    By Frank Tang and Clara Denina 
    NEW YORK/LONDON, May 9 (Reuters) - Gold fell 1 percent in
choppy trade on Thursday as the dollar rose to a four-year high
against the yen and rallied against the euro, decreasing
bullion's appeal as a hedge against U.S. currency depreciation.
    After trading slightly lower earlier in the session, bullion
accelerated losses after the dollar smashed above the 100 yen
mark and jumped 1 percent against the euro. The resurgent dollar
also weighed down on equities and other industrial commodities
such as crude and copper.  
    Bullion investor sentiment remains lackluster as outflows in
gold-backed exchange-traded funds showing no signs of abating.
    "There was heavy put activity, which is usually a bearish
sign," said Frank McGhee, head precious metals trader at
Integrated Brokerage Services LLC.
    Spot gold was down 0.9 percent to $1,458.50 by 3:34
p.m. EDT (1934 GMT). Some investors took profits after bullion
posted a 1.4 percent gain in the previous session, its biggest
one-day rise in two weeks.
    U.S. Comex gold for June delivery settled down $5.10
to $1,468.60 an ounce, with trading volume on track to finish in
line with its 30-day average, preliminary Reuters data showed.
    Gold was under pressure earlier in the session after data
showed the number of Americans filing new claims for jobless aid
fell last week to its lowest level in nearly 5-1/2 years,
reducing the need for more economic stimulus from the Federal
    Holdings of SPDR Gold Trust, the world's largest
gold-backed ETF, fell 0.60 percent to 1,051.47 tonnes on
Wednesday from 1,057.79 tonnes on Tuesday, the lowest level
since March 2009. 
    Gold prices have recovered more than half of their losses
after a sharp selloff sent the metal to a two-year low of
$1,321.35 on April 16.
    However, hopes of surging demand from China in coming
months, after net gold inflows from Hong Kong hit a record in
March, might further support bullion prices, which have been
hurt by sagging investor confidence this year, analysts said.
    Silver fell 0.7 percent to $23.73 an ounce.
    Reflecting continued retail investment buying of silver, the
U.S. Mint will limit dealers' purchases of its "America the
Beautiful" five-ounce silver bullion coins when they go on sale
next week. 
    Platinum group metals rose on buying ahead of major wage
talks between South Africa's major mining unions and PGM
    A plan by the world's No. 1 platinum producer Anglo American
Platinum (Amplats) to reveal its revised restructuring plan on
Friday also boosted demand, analysts said.
Gold's outlook remains uncertain with outflows in gold-backed
exchange-traded funds showing no signs of abating.
    Palladium rose 2 percent to $705.75, and platinum
 rose 0.2 percent to $1,502.49 an ounce.
 3:34 PM EDT     LAST/    NET   PCT      LOW    HIGH  CURRENT
                SETTLE   CHNG  CHNG                       VOL
 US Gold JUN   1468.60  -5.10  -0.3  1452.10 1476.00  149,789
 US Silver JUL  23.911 -0.016  -0.1   23.520  24.170   34,165
 US Plat JUL   1516.50  11.60   0.8  1498.70 1519.00    8,606
 US Pall JUN    714.75  16.50   2.4   691.00  716.90    5,002
 Gold          1458.50 -13.69  -0.9  1453.95 1475.51         
 Silver         23.730 -0.160  -0.7   23.580  24.170
 Platinum      1502.49   2.49   0.2  1501.50 1516.00
 Palladium      705.75  13.75   2.0   693.75  713.97
 TOTAL MARKET              VOLUME          30-D ATM VOLATILITY
                CURRENT   30D AVG  250D AVG   CURRENT     CHG
 US Gold        205,076   219,740   178,227     19.66   -0.55
 US Silver       41,341    79,320    55,051     27.62   -0.33
 US Platinum      8,678    12,520    11,840     19.59   -0.09
 US Palladium     5,617     5,278     5,036                  

 (Additional reporting by Lewa Pardomuan in Singapore; editing
by James Jukwey, Jane Baird, Bob Burgdorfer and Nick Zieminski)
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