(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 15 (Reuters) - Platinum fell on Friday as
investors locked in profit after the metal roared to a record
high above $2,000 an ounce the previous day, while gold rose on
expectations of more interest rate cuts in the United States.
Platinum <XPT=> dropped to $1,995/2,002 an ounce from
$1,997/2,007 an ounce late in New York on Thursday, when it
jumped as high as $2,025 as a power crisis in South Africa
forced another miner to forecast lower output in 2008.
"The $2,000 mark is the make-or-break level. That's where
the funds want it to be," said William Kwan, a dealer at
Phillip Futures in Singapore.
South Africa's state power firm Eskom said on Thursday it
would increase coal purchases and buy back electricity from
those industrial users able to reduce consumption under a plan
to address crippling shortages. []
South Africa, which accounts for 80 percent of global
platinum supply, has been hard hit by power cuts since early
January, forcing mines to shut for five days last month and
sending platinum prices to historic highs.
"It's more like a two-way trade. There's speculative buying
out of TOCOM but it looks like the market is out of steam.
Perhaps, $1,980 may offer support," said a dealer in Hong Kong.
Japanese platinum futures were at record highs. The most
active December contract <0#JPL:> on the Tokyo Commodity
Exchange ended the morning session 175 yen per gram higher at
6,640 yen.
Impala Platinum <IMPJ.J>, the world's No. 2 producer, on
Thursday forecast "very tight market conditions", while No. 1
producer Anglo Platinum <AMSJ.J> said this week the power
problem alone would cut output by as much as 120,000ounces in
2008.
Gold <XAU=> rose to $909.50/910.30 an ounce from
$907.10/907.90 an ounce late in New York.
The prospect of more U.S. interest rate cuts was likely to
support gold but funds and jewellers were still keen to sell
following gold's rise to record highs around $936 in early
February, said Kwan of Phillip Futures.
"The stockpiles of refiners in Zurich seem to be quite
high. They are probably sellers in the market right now," said
Kwan, referring to refiners who cast gold bars for sales to
investors around the world.
"If there's any reversal, the funds might be the first to
sell it down but the retail side is still short," said the Hong
Kong dealer, who expected gold to trade in a range of $890 to
$915 on Friday.
Federal Reserve Chairman Ben Bernanke told the U.S. Senate
Banking Committee on Thursday the central bank "will act in a
timely manner as needed to support growth and to provide
adequate insurance against downside risks."
The comments reinforced the impression the Fed will slash
its benchmark rate by 50 basis points when the U.S. central
bank holds its next policy meeting in March.
In theory, a rate cut will boost gold's appeal as an
alternative investment to currencies and bonds.
The euro was barely changed at $1.4640 <EUR=>, while the
dollar <JPY=> slipped to 107.65 yen.
Palladium <XPD=> firmed to $437/442 an ounce from $433/437
an ounce. Silver <XAG=> edged up to $17.29/17.34 an ounce from
$17.24/17.29 in New York.
COMEX's April gold futures <GCJ8> added $2.0 an ounce to
$912.8 an ounce.
Precious metals prices at 0251 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 909.40 0.90 +0.10 9.21
Spot Silver 17.29 0.06 +0.35 17.06
Spot Platinum 1995.00 -2.00 -0.10 31.25
Spot Palladium 437.00 4.00 +0.92 18.75
TOCOM Gold 3173.00 -22.00 -0.69 3.69
22257
TOCOM Platinum 6640.00 175.00 +2.71 24.37
30248
TOCOM Silver 603.00 -8.80 -1.44 11.46
624
TOCOM Palladium 1549.00 -12.00 -0.77 14.66
2908
Euro/Dollar 1.4632
Dollar/Yen 107.82
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)
