* Gold makes more gains on Iran tension, may target $946
* Oil steady, after little reaction to Iran's missile tests
* TOCOM platinum bounces
(Updates prices, adds activity in physical sector)
By Lewa Pardomuan
SINGAPORE, July 10 (Reuters) - Gold rose further on
Thursday as safe-haven buying persisted after Iran test-fired
missiles, which escalate tension with West over Tehran's
nuclear programme.
Gold has bounced more than 8 percent since falling to a
six-week low of $856.80 an ounce in mid-June. Dealers saw
buying from India, but gains may be capped as the missile tests
conducted by OPEC member Iran had not caused a surge in oil as
feared.
Gold <XAU=> firmed to $929.00/930.00 an ounce from
$926.90/928.10 an ounce late in New York on Wednesday, when it
gained more than $5.
"Basically, we saw some bids in the market but it's not
that active. Rangewise, maybe we will try a little higher again
today," said Ellison Chu, senior manager at Standard Bank
London in Hong Kong. "Maybe we will try $935-$936," he said.
Iran test-fired nine missiles on Wednesday and warned the
United States and Israel it was ready to retaliate for any
attack over its disputed nuclear projects. Washington told
Tehran to halt further tests. []
Geopolitical tension lifts gold's safe-haven appeal in
times of uncertainty. Gold also benefits from rising energy
costs due to its role as a hedge against investment, while a
struggling dollar makes bullion an attractive alternative
investment.
Oil <CLc1> added 50 cents to $136.55 a barrel, having
settled slightly higher after a U.S.government report showed a
big drawdown in nationwide crudeinventories. []
The euro hardly changed at $1.5730 <EUR=>.
"We's seen two-way business but there's also light buying
from jewellers in India," said a physical dealer in Singapore,
referring to the world's main consumer. "I guess firm oil
prices will prevent gold from testing lower levels again," he
said.
Gold's gains lifted silver, while platinum saw bargain
hunting after fears that a slowing U.S. economy could weaken
demand from automakers dragged down the price to a two-month
low this week.
"Having broken above $925, (gold) now targets $936 and the
key level of $946," said Investec Australia in a report.
"With so much uncertainty in the markets bringing the kind
of sharp losses seen on most commodity fronts on Monday and
Tuesday, we can expect volatility in the days ahead as
investors reassess their views for these sectors in the second
half of 2008 and beyond."
Silver <XAG=> edged up to $18.12/18.18 an ounce from
$18.09/18.15 late in New York.
Spot platinum <XPT=> rose to $1,975.00/1,995.50 an ounce
from $1,958.50/1,978.50 late in New York. Spot palladium <XPD=>
firmed to $442.50/450.50 an ounce from $442.00/450.00 an ounce.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $1.9 an
ounce to $930.6.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange rose 34 yen
per gram to 6,718 yen, having settled 1.3 percent lower on
Wednesday.
Precious metals prices at 0408 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 929.05 1.30 +0.14 11.57
Spot Silver 18.12 0.04 +0.22 22.68
Spot Platinum 1975.00 16.50 +0.84 29.93
Spot Palladium 443.00 2.00 +0.45 20.38
TOCOM Gold 3224.00 -5.00 -0.15 5.36
12982
TOCOM Platinum 6718.00 34.00 +0.51 25.83
8600
TOCOM Silver 630.70 6.60 +1.06 16.58
655
TOCOM Palladium 1566.00 15.00 +0.97 15.91
586
Euro/Dollar 1.5728
Dollar/Yen 106.86
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)
