* Gold up as other commods jump, after AIG bailout plan
* Fed to lend up to $85 billion to AIG
* Platinum up more than 5 pct, but market still fragile
(Add comments, update prices)
TOKYO, Sept 17 (Reuters) - Gold climbed on Wednesday, in
tandem with other commodities, as the Federal Reserve's rescue
of troubled insurer American International Group (AIG) offered
a glimmer of hope for a break in the credit crisis.
Bullion was lifted by hopes that more stable financial
markets might help revive interest in beaten-down commodities
and by the dollar's fall against the euro, even though a 1
percent slump in the yen suggested limited demand for safer
havens like gold.
Other precious metals jumped broadly, with spot platinum
<XPT=> climbing more than 5 percent to as high as $1,110 per
ounce at one point after having dived nearly 10 percent the
previous day.
Spot gold <XAU=> rose 0.4 percent, or $2.70, to $780.25 an
ounce as of 0340 GMT from Tuesday's nominal close in New York,
recovering from the previous day's $3 fall as risk-averse
investors rushed to dump all commodities.
The U.S. Federal Reserve said in a statement it would
extend AIG <AIG.N> $85 billion in exchange for a nearly 80
percent stake to bail it out. []
Gold has been whipsawed in recent weeks by rapidly shifting
investor perception over whether it remains a safe-haven asset
or whether it is part of a riskier commodities pool.
"We can take AIG's news as a positive factor for gold,
although uncertainty still remains in the market," said Shuji
Sugata, a manager at Mitsubishi Corp Futures and Securities
Ltd.
"Uncertainty in the financial market could force investors
to cut risky positions, while at the same time, gold is gaining
safe-haven appeal. Trading will remain very volatile for a
while," Sugata said.
COMEX gold futures rose after falling in New York on
Tuesday. The most active December contract <GCZ8> was trading
$3.0 or 0.4 percent higher at $783.5 from the New York
settlement.
The benchmark August 2009 gold contract on the Tokyo
Commodity Exchange <0#JAU:> was 68 yen or 2.6 percent higher at
2,662 yen per gram from Tuesday.
Traders said there was more appetite from investors in Asia
and the Middle East to hold gold as a safe-haven instrument.
"There is especially strong interest from Asia and the
Middle East to hold gold. They have been seeking
bargain-hunting opportunities as uncertainties remain in
currencies, stocks and credit markets," said a senior trader at
a trading house.
Spot platinum jumped more than 5 percent on short-covering,
reflecting strong gains in crude oil prices and offsetting a
near 10 percent plunge the previous day on demand concerns.
Oil rebounded more than $3 a barrel to more than $94 on
Wednesday, after two days of free fall, as AIG's bailout
sparked a relief rally on Wall Street. []
Spot platinum <XPT=> was trading at $1,087/1,117 per ounce,
up 3.6 percent or $38 from Tuesday's nominal close in New York.
Platinum, mainly used in autocatalysts, struck a record
high of $2,290 an ounce in March.
Platinum has been hit by heavy selling due to a slowing
U.S. economy and poor car sales. Demand for new cars in Europe
fell by 7.3 percent in July and 15.6 percent in August compared
with a year ago. Over the first eight months of the year, new
car registrations in Europe fell by 3.9 percent. []
"Precious metals are up, basically on a technical rebound,
but the market is still very nervous about buying strongly,"
said Hisaaki Tasaka, a market analyst at Ace Koeki Co Ltd.
"Platinum jumped but there are strong concerns about demand
for industrial metals and platinum. Gains in platinum are
likely to be limited."
Precious metals prices at 0351 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 779.00 1.45 +0.19 -6.45
Spot Silver 10.57 0.13 +1.25 -28.44
Spot Platinum 1087.00 38.00 +3.62 -28.49
Spot Palladium 224.00 3.00 +1.36 -39.13
TOCOM Gold 2653.00 59.00 +2.27 -13.30
21958
TOCOM Platinum 3675.00 -28.00 -0.76 -31.17
14666
TOCOM Silver 364.00 1.90 +0.52 -32.72
678
TOCOM Palladium 774.00 4.00 +0.52 -42.71
521
Euro/Dollar 1.4159
Dollar/Yen 105.93
TOCOM prices in yen per gram, except for silver which is in
yen per 10 grams, spot prices in $ per ounce.
(Reporting by Chikafumi Hodo; Editing by Clarence Fernandez))
