(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 29 (Reuters) - Gold powered to a new high
around $973 an ounce on Friday after crude oil set an all-time
high of above $103 a barrel, igniting another round of buying
from investors and speculators.
Palladium jumped to its best level in more than six years,
silver held near a 27-year high struck on Thursday but platinum
slipped in the absence of new developments in South Africa's
supply problems.
Gold <XAU=> jumped as high as $973.10 an ounce, up from
$968.90/969.70 late in New York on Thursday. Gold has gained
more than 16 percent this year, with the upside target pegged
by dealers at $1,000 an ounce.
Record high oil and expectations of more interest rates
cuts in the United States add to inflation pressures, elevating
gold's appeal as a hedge against inflation, while volatile
stock markets have encouraged investors to shift some of their
money into gold and other precious metals.
"The target is $1,000. I personally hope it will be $1,000
within a month," said Yukuji Sonoda, precious metals analyst at
Daiichi Commodities in Tokyo, adding that gold was likely be
driven by movements in oil in coming weeks.
Crude oil <CLc1> rallied to another record above $103 a barrel
as Ecuador shut a key export pipeline and a fire hit a major
European natural gas plant.
While oil is at a record price in inflation-adjusted as
well as nominal terms, gold is far from an inflation-adjusted
record, which analyst GFMS has put as high as $2,079 an ounce.
"Most of the funds are buying inflation hedges such as
gold, silver and oil. It's still a bull market, where hedge
funds and banks buy precious metals," said William Kwan, a
dealer at Phillip Futures in Singapore.
"I think inflation is really getting out of hand. I am
looking at $955 for support and resistance at $985," said Kwan,
who pegged upside target for silver at $20.
Silver <XAG=> edged up to $19.76/19.81 an ounce from
$19.74/19.79 an ounce, having reached a 27-year peak of $19.83
an ounce on Thursday.
The dollar tumbled to a three-year low versus the yen and
held near record troughs against other currencies after Federal
Reserve chief Ben Bernanke warned some small U.S. banks could
fail, suggesting that interest rates may fall more.
[]
Spot platinum <XPT=> fell to $2,105/2,112 from $2,135/2,140
an ounce late in New York and off last week's record high of
$2,192 an ounce.
Automakers, who had bought the metal on fears of further
price hike and mining disruptions in South Africa, were on the
sidelines, waiting for more corrections, said Sonoda of Daiichi
Commodities.
"Car makers are waiting for the price to decrease to
$2,000," he said.
Platinum, used in jewellery and auto catalysts, has jumped
more than 40 percent this year after mines in South Africa,
accounting for 80 percent of world output, were shut for five
days at the height of last month's power crisis.
The most active February 2009 contract <0#JPL:> on the Tokyo
Commodity Exchange ended the morning session 162 yen per gram
lower at 6,855 yen, also hit by a firm yen against the dollar.
Palladium <XPD=> hit a high of $575 an ounce, its best
level in more than six years, up from $560.00/564.00 late in
New York.
Precious metals prices at 0219 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 969.25 0.35 +0.04 16.40
Spot Silver 19.70 -0.04 -0.20 33.38
Spot Platinum 2104.00 -31.00 -1.45 38.42
Spot Palladium 572.00 12.00 +2.14 55.43
TOCOM Gold 3290.00 -7.00 -0.21 7.52
37403
TOCOM Platinum 6855.00 -162.00 -2.31 28.39
17613
TOCOM Silver 670.20 8.70 +1.32 23.88
958
TOCOM Palladium 1996.00 65.00 +3.37 47.74
13362
Euro/Dollar 1.5170
Dollar/Yen 104.60
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by )
