(Adds closing in Tokyo)
By Lewa Pardomuan
SINGAPORE, Feb 28 (Reuters) - Gold dipped on Thursday but
remained within sight of a record high hit the previous day,
while speculators sold platinum as they awaited new
developments in South Africa's supply problems.
Gold <XAU=> fell to $955.40/956.30 an ounce from
$957.50/958.30 late in New York, as investors book profits
after the metal rallied to an all-time high of $964.70 on
Wednesday on a tumbling dollar and the prospect of U.S.
interest rate cuts.
Gold has gained around 16 percent this year on investor
demand driven by record high crude oil prices <CLc1> and the
possibility of more interest rate cuts, which has raised the
metal's appeal as an alternative investment.
The upside target was pegged by dealers at $1,000 an ounce.
"In times of sharp rises in prices, it's a must to remember
there are plenty of investors and traders waiting to re-enter
on dips," said Pradeep Unni, an analyst at Vision Commodities
in Dubai.
"The Federal Reserve is likely to slash rates further on
March 18, propelling gold further north. Multiple closings
above $950 would mean sustained gains in coming days."
The dollar held near record lows against the euro as a
sharp drop in durable goods orders and home sales fuelled
recession concerns while Fed Chairman Ben Bernanke signalled a
readiness to cut interest rates again. []
"It's clear that investor interest in commodities as a
whole remains very strong with particular interest from the
pension funds who look for returns in commodities when many
other markets are either too volatile or are falling," said
Investec Australia.
In the physical sector, selling back from retail investors
in Japan slowed down on expectations there was room for gold to
rise further, while dealers in Singapore noted light selling
from jewellers in Indonesia and Thailand.
Gold bars were offered at a discount of 25 U.S. cents an
ounce to the spot London prices in Tokyo, unchanged from last
week <GOLD/ASIA1>.
In other precious metals, silver was off a 27-year high,
palladium fell below Wednesday's 6-1/2-year high, while selling
in Japanese futures put pressure on cash platinum.
Platinum <XPT=> slipped to $2,097/2,105 from $2,130/2,140
an ounce late in New York. It hit a record of $2,192 on Feb. 22
in another round of speculative buying as persistent power
supply problems disrupted mining in South Africa, the world's
main producer.
"Recently, we haven't heard any fresh news from South
Africa. That's why speculators decided to take profit," said a
dealer in Tokyo.
"The Tokyo stock market is also falling sharply, which
triggers selling in other TOCOM contracts. I guess speculators
want to get some cash," he said.
The most active February 2009 contract <0#JPL:> on the
Tokyo Commodity Exchange tumbled by 240 yen per gram limit to
end at 7,107 yen, with a firmer yen against the dollar also
spurring liquidation.
Silver <XAG=> fell to $19.12/19.17 an ounce from
$19.22/19.27 an ounce, after touching a 27-year peak of $19.45
on Wednesday. Palladium <XPD=> fell to $541/546 an ounce from
$550/555 late in New York on Wednesday.
Precious metals prices at 0833 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 955.10 -1.90 -0.20 14.70
Spot Silver 19.12 -0.10 -0.52 29.45
Spot Platinum 2097.00 -33.00 -1.55 37.96
Spot Palladium 541.00 -9.00 -1.64 47.01
TOCOM Gold 3297.00 -22.00 -0.66 7.75
93035
TOCOM Platinum 7017.00 -240.00 -3.31 31.43
32401
TOCOM Silver 661.50 -7.30 -1.09 22.27
1964
TOCOM Palladium 1931.00 -39.00 -1.98 42.93
29196
Euro/Dollar 1.5088
Dollar/Yen 106.48
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)
