* Gold falls to two-week low as oil extends losses
* Platinum hits six-month low on demand fears
* Tokyo gold and platinum futures dented by fund selling
(Updates prices, adds ETF holdings)
By Lewa Pardomuan
SINGAPORE, July 24 (Reuters) - Gold struck a two-week low
on Thursday, losing some of of its safe-haven appeal after oil
extended losses and stock markets rose, while platinum tumbled
to its weakest in six months.
Platinum has been hit by fears of falling demand from car
makers, including General Motors <GM.N> and Toyota Motor Corp
<7203.T>, due to a slowing U.S. economy. Autocatalysts account
for around 35 percent of global demand for the metal.
Gold <XAU=> fell as low as $916.40 an ounce, its lowest
since July 9, down from $921.35/922.95 late in New York on
Wednesday -- well below a record high of $1,030.80 hit in
March.
"Weaker oil prices, a stronger dollar, both of these are
negative for gold. I just think there's a good possibility that
we might see a continuation of a fall in oil prices," said
Darren Heathcote of Investec Australia in Sydney.
"I've got to say I didn't foresee gold sort of breaking
through the $936 area as easily as it did. But now it's here.
We've got to be targeting $912-$904 or something like that," he
said.
Oil <CLc1> extended losses and hit a seven-week low of
$123.89 a barrel after data showed a larger-than-expected
increase in domestic U.S. gasoline stocks last week. []
Japan's Nikkei average <> climbed 1.27 percent.
Declines in holdings on SPDR Gold Trust in New York, the
world's biggest gold-backed exchange-traded fund
<XAUEXT-NYS-TT>, to around 673 tonnes this week from a record
above 705 tonnes in mid-July, suggested there was a shift to
equities, said dealers.
In theory, a weaker oil price reduces gold's appeal as a
hedge against inflation, and rising stock markets reduce its
appeal as an alternative investment.
Platinum <XPT=> dropped to $1,715.00/1,725.00 an ounce from
$1,744.00/1,764.00 an ounce. It tumbled to $1,703.50 an ounce
on Thursday, its lowest level since late January.
"I am bearish on precious metals for now, particularly
platinum and palladium. Their charts looks quite bad," said a
dealer in Singapore.
"The next support is $1,684 but if we break this level,
it's a long long way down to the $1,590 regions," he said.
Platinum struck a record at $2,290 in March after an
electricity shortage that disrupted mining in main producer
South Africa triggered speculative buying, but a combination of
profit taking and demand fears erased most of the gains.
Spot palladium <XPD=> fell to $376.00/384.00 an ounce from
$383.00/391.00 late in New York. It hit an intraday low of
$371.50 an ounce, its lowest level since Jan. 25.
Palladium is also used in jewellery and autocatalysts.
Silver <XAG=> was steady at $17.32/17.40 an ounce compared
with $17.33/17.38 late in New York, off a three-week low of
$17.26 an ounce.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange fell $1.3 to
$921.50 an ounce.
The most active Tokyo gold contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange ended the morning
session 61 yen per gram lower at 3,214 yen.
Precious metals prices at 0308 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 921.30 1.55 +0.17 10.64
Spot Silver 17.33 0.00 +0.00 17.33
Spot Platinum 1715.00 -27.00 -1.55 12.83
Spot Palladium 376.00 -3.50 -0.92 2.17
TOCOM Gold 3214.00 -61.00 -1.86 5.03
30637
TOCOM Platinum 5876.00 -207.00 -3.40 10.06
18629
TOCOM Silver 604.30 -14.50 -2.34 11.70
643
TOCOM Palladium 1324.00 -64.00 -4.61 -2.00
1437
Euro/Dollar 1.5693
Dollar/Yen 107.71
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by)
