(Recasts, updates closing prices, market activity; adds second
byline, dateline, previously LONDON)
By Frank Tang and Lewa Pardomuan
NEW YORK/LONDON, May 21 (Reuters) - Gold rallied to its
highest level in a month near $930 an ounce on Wednesday after
oil soared to a record, and platinum jumped more than 3 percent
as strong fundamentals and a weaker dollar spurred buying.
Spot gold <XAU=> was at $928.55/929.75 an ounce by New
York's last quote at 2:15 p.m EDT (1815 GMT), up from
$920.20/921.40 late on Tuesday. It hit a session high of
$931.85 an ounce, its highest since April 21.
"If ever there was an oil-dominated trading day, today was
it as far as gold was concerned," Jon Nadler, senior analyst at
Kitco Bullion Dealers in Montreal told clients in a note.
U.S. crude futures <CLc1> ended above $130 per barrel on a
surprise drop in U.S. crude stockpiles, boosting gold's appeal
as a hedge against inflation.
"I am looking at $935-$940 for nearby resistance After
that, we will be looking at $950-$955," said Adrian Koh, an
analyst at Philip Futures in Singapore. "Technically, it looks
gold and platinum could go up some more."
Gold remained $100 below a record high of $1,030.80 hit on
March 17.
Spot platinum <XPT=> rallied to a high of $2,198.50 an
ounce, its highest since March 6. It was last at $2,187/2,207
an ounce, up from $2,133/2,153 in New York late on Tuesday.
Platinum, used in jewelry and auto catalysts, powered to a
record at $2,290 an ounce on March 4 after a power crisis in
main producer South Africa disrupted mining and sparked fears
of a supply deficit.
"I have to say the strong short-term uptrend on platinum is
still intact and there's probably more upside to come and that
could probably go well with more upside on gold," said Koh.
Platinum was likely to head toward record highs of
$2,290-$2,300 an ounce after it broke a key resistance of
$2,192, said Koh.
Precious metals refiner Johnson Matthey <JMAT.L> has said
platinum may spike to a record high of $2,500 an ounce this
year and see another supply deficit due to production
shortfalls and strong demand.
The euro <EUR=> shot up to $1.5789 against the dollar,
hitting its highest level in a month.
Rising energy prices boost gold's appeal as a hedge against
inflation, and a weak dollar elevates bullion's appeal as an
alternative investment. Gold's gains often lift other precious
metals.
"If (gold) can hold this sort of $915 level in the next
couple of days, I would have thought it can push back up to
$950," said David Thurtell, analyst at BNP Paribas, who pegged
support at the 50-day moving average around $912.
"Gold could go back over $1,000, probably in Q3."
Gold prices above $1,000 an ounce are sustainable because
of strong consumer demand in Asia, with supplies remaining
tight as higher costs force miners to scrap marginal projects,
a Barrick Gold Corp executive said on Tuesday.
U.S. gold futures for June delivery on the COMEX division
of the New York Mercantile Exchange settled up $8.40 at $928.60
an ounce.
Spot silver rose to $17.95/18.03 an ounce from $17.59/17.66
late in New York on Tuesday, having earlier risen to a high of
$18.09 -- its highest level since April 18.
Spot palladium ended up to $454.00/462.00 versus
$443.00/448.00 its Tuesday finish in New York.
