* Gold pauses for breath after hitting 3-month high
* Oil steady, offers support for precious metals
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, July 11 (Reuters) - Gold dipped on Friday,
having rallied to its highest level in almost three months the
previous day, but a weaker U.S. dollar and strong oil prices
could offer an excuse to investors to buy again.
Platinum hit a one-week high on bargain hunting and gains
in Tokyo futures, after falling to a two-month low on Tuesday
on fears that a slowing U.S. economy could weaken demand for
the precious metal used in auto catalysts.
Gold <XAU=> eased to $942.00/943.00 an ounce from
$944.10/945.30 late in New York as speculators booked profits
and jewellery makers in parts of Asia cashed in on the metal's
gains.
Gold jumped as high as $947.40 an ounce on Thursday, its
strongest since April 17, when it touched $952.60 an ounce.
"It's going to be choppy. I think the market is closely
watching developments in oil at the moment. If it breaches
$950, I think it's going to look interesting," said Mark
Pervan, senior commodities analyst with ANZ in Melbourne.
"I think around that level it could move higher from there
because it could trigger a short-covering rally at that point
and some stop-loss selling."
Gold struck a lifetime high of $1,030.80 in March on
record-high crude oil, which raised fears of inflation and
expectations of more rate cuts in the United States, making the
metal more attractive as an alternative investment.
Oil <CLc1> was steady at $141.69 a barrel after rising 4
percent in the past session on news of more missiles tests by
OPEC member Iran and threats toproduction in Nigeria and
Brazil. []
The euro slipped to $1.5774 <EUR=>, having risen on
concerns over the health of the U.S. financial sector as shares
and bonds of the country's two big mortgage finance companies
tumbled on capitalisation fears. []
"I think the market is pretty supported more by the oil
price at the moment than the dollar. What's driving oil markets
at the moment is purely geopolitical tension," said Pervan.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $1.3 an
ounce to $943.3.
Spot platinum <XPT=> rose to $2,018.50/2,038.50 an ounce
from $1,994.50/2,014.50 late in New York, having hit a 1-week
high of 2,023 an ounce.
"Platinum faces the largest obstacle as the $2,030-$2,040
support-turned-resistance will be an important level to look at
for higher platinum prices," said Philip Futures in a report.
"We will probably have to see a movement above the $2,050
levels for platinum to retest the $2,100-$2,120 resistance."
The most active platinum contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange rose 166 yen per gram
to 6,890 yen as funds returned to the market after the contract
hit a one-month low this week.
Spot palladium <XPD=> rose to $449.00/457.00 an ounce from
$445.00/453.00 an ounce late in New York. Silver <XAG=> edged
up to $18.29/18.35 an ounce from $18.28/18.33 late in New
York.
Precious metals prices at 0442 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 942.10 -4.30 -0.45 13.14
Spot Silver 18.28 0.02 +0.11 23.76
Spot Platinum 2018.50 22.00 +1.10 32.80
Spot Palladium 449.00 3.50 +0.79 22.01
TOCOM Gold 3276.00 48.00 +1.49 7.06
48126
TOCOM Platinum 6895.00 171.00 +2.54 29.14
20813
TOCOM Silver 635.80 5.60 +0.89 17.52
1410
TOCOM Palladium 1595.00 30.00 +1.92 18.06
1208
Euro/Dollar 1.5774
Dollar/Yen 107.12
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)
