* Gold rises further on firm oil
* Platinum up 1 pct but no signs of buying from automakers
(Updates prices)
By Lewa Pardomuan
SINGAPORE, Aug 27 (Reuters) - Gold extended gains on
Wednesday as fears of rising inflation, tensions between Russia
and the West and a rebounding euro spurred buying from
speculators.
Platinum gained more than 1 percent to track gold but
automakers were still on the sidelines. Palladium and silver
also gained.
Gold <XAU=> rose to $827.15/828.15 an ounce from
$822.90/824.30 an ounce late in New York on Tuesday, when it
gained more than $2 an ounce.
Gold has bounced nearly 7 percent since tumbling to a
nine-month low around $773 in mid-August but the metal was well
below a record high of $1,030.80 struck in March. Analysts said
chart-based support will hold prices above $800 an ounce.
"Private investors have gradually shown interest in gold,
and oil price has also reached its bottom. Within this week,
it's possible for gold to reach $835 or $840," said Yukuji
Sonoda, precious metals analyst at Daiichi Commodities in
Tokyo.
Oil <CLc1> rose 47 cents to $116.74 a barrel on concerns
that a hurricane could disruptU.S. oil and natural gas
production in the Gulf of Mexico and on escalating tensions
betweenthe West and Russia over Georgia. []
The euro firmed to $1.4710 <EUR=> on short covering,
pulling away from a six-month low of $1.4570 hit on trading
platform EBS on Tuesday. []
"Gold near $800 remains vulnerable in the near term to a
stronger dollar," said Jeffrey Nichols, managing director of
American Precious Metals Advisors.
"But it isunderpinned by rising physical demand in key
global markets, deteriorating macroeconomic and financial
environments, accelerating inflation, and tightsupply/demand
fundamentals," he said.
Demand from jewellery makers has picked up in India, the
world's main consumer, ahead of the festive season which peaks
in October with the Hindu Diwali festival of lights. []
The new benchmark contract on the Tokyo Commodity Exchange,
August 2009 <JAUc6>, ended the morning session at 2,925 yen per
gram after opening at 2,926 yen.
Spot platinum <XPT=> rose to $1,430.00/1,450.00 an ounce
from $1,409.50/1,429.50 late in New York as bargain buying
persisted after the metal sank to an 11-month low around $1,296
last week.
"Automakers company haven't entered the market yet. They
will wait and see (further price trends)," said Sonoda of
Daiichi Commodities, who pegged support around $1,400 an ounce.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally damaging chemicals. Platinum prices are well
below a lifetime high of $2,290 hit in early March.
Spot palladium <XPD=> inched up to $287.50/295.50 an ounce
from $282.00/290.00 an ounce. Silver <XAG=> edged up to
$13.57/13.63 an ounce from $13.56/13.64 an ounce late in New
York.
New York gold futures <GCZ8> added $4.7 an ounce to
$832.80.
Precious metals prices at 0211 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 827.15 3.35 +0.41 -0.67
Spot Silver 13.62 0.06 +0.44 -7.79
Spot Platinum 1430.00 20.00 +1.42 -5.92
Spot Palladium 288.00 6.00 +2.13 -21.74
Euro/Dollar 1.4696
Dollar/Yen 109.27
(Editing by Kim Coghill)
