* 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 quotes)
By Lewa Pardomuan
SINGAPORE, July 10 (Reuters) - Gold rose further on
Thursday as safe-haven buying persisted after Iran test-fired
missiles, escalating tension with the 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.
"There are a lot of uncertainties but I think it still has
the potential to go up in the longer term," said Beh Hsia Wah,
a dealer at United Overseas Bank in Singapore.
Gold <XAU=> firmed to $927.20/928.20 an ounce from
$926.90/928.10 an ounce late in New York on Wednesday, having
earlier hit a high of $930.55 an ounce.
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. []
U.S. Secretary of State Condoleezza Rice said on Thursday
the United States wants to send a message to Iran that it will
defend it allies from possible attack.
"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.
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 inflation, while a
struggling dollar makes bullion an attractive alternative
investment.
Oil <CLc1> was steady at $136.09 a barrel, having settled
slightly higher after a U.S.government report showed a big
drawdown in nationwide crudeinventories. []
The euro eased to $1.5723 <EUR=>.
"Having broken above $925, (gold) now targets $936 and the
key level of $946," said Investec Australia, adding that it
expected volatility ahead as investors reassess their views in
the second half of 2008 and beyond after recent losses in
commodities markets.
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.
Silver <XAG=> edged up to $18.10/18.15 an ounce from
$18.09/18.15 late in New York.
Spot platinum <XPT=> rose to $1,965.00/1,985.00 an ounce
from $1,958.50/1,978.50 late in New York. Spot palladium <XPD=>
firmed to $443.00/451.00 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 $0.1 an
ounce to $928.7.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange rose 36 yen
per gram to 6,720 yen, having settled 1.3 percent lower on
Wednesday.
Precious metals prices at 0719 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 927.20 -0.55 -0.06 11.35
Spot Silver 18.10 0.02 +0.11 22.55
Spot Platinum 1965.00 6.50 +0.33 29.28
Spot Palladium 443.00 2.00 +0.45 20.38
TOCOM Gold 3227.00 -2.00 -0.06 5.46
28330
TOCOM Platinum 6724.00 40.00 +0.60 25.94
13580
TOCOM Silver 629.40 5.30 +0.85 16.34
902
TOCOM Palladium 1566.00 15.00 +0.97 15.91
790
Euro/Dollar 1.5724
Dollar/Yen 107.21
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
