* Gold rises further on firm oil
* Platinum up 1 pct but no signs of buying from automakers
(Updates prices, adds quotes)
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 speculative buying.
Platinum gained more than 1 percent to track gold but gains
maybe limited with automakers still on the sidelines. Palladium
and silver also gained.
Gold <XAU=> rose to $827.25/828.25 an ounce from
$822.90/824.30 an ounce late in New York on Tuesday, when it
gained more than $2 an ounce.
"Gold is still consolidating for the time being. But it
seems the market is still a little bit worried about the global
economy," said Dick Poon, manager precious metals at Heraeus
Ltd in Hong Kong.
Gold has bounced nearly 7 percent since tumbling to a
nine-month low around $773 in mid-August but the metal is 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 the 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 73 cents to $117.00 a barrel on concerns
that a tropical storm 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 $1.4720 <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>, was at 2,919 yen per gram after opening at
2,926 yen.
Spot platinum <XPT=> rose to $1,433.00/1,453.00 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 $288.50/296.50 an ounce
from $282.00/290.00 an ounce. Silver <XAG=> edged up to
$13.66/13.72 an ounce from $13.56/13.64 an ounce late in New
York.
New York gold futures <GCZ8> added $4.8 an ounce to
$832.90.
Precious metals prices at 0419 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 827.20 3.40 +0.41 -0.66
Spot Silver 13.66 0.10 +0.74 -7.52
Spot Platinum 1433.00 23.00 +1.63 -5.72
Spot Palladium 288.50 6.50 +2.30 -21.60
(Editing by Kim Coghill)
