(Updates prices)
By Lewa Pardomuan
SINGAPORE, Jan 25 (Reuters) - Gold was near an all-time
high on Friday and platinum hit another record on dollar
weakness, supply concerns, firm oil and expectations of more
interest rate cuts in the United States.
Spot gold <XAU=> hit an intraday high of $913 an ounce,
within sight of last week's record high of $914 an ounce,
before dipping to $909.55/910.50 an ounce, still higher than
$907.00/907.70 an ounce late in New York on Thursday.
Platinum <XPT=> hit another record high of $1,618.50 ounce
on investment demand, gains in gold and after Lonmin Plc
slashed its sales outlook for the year. The metal was last
quoted at $1,606/1,611 an ounce in New York.
"Platinum is confronted by a big supply and demand problem.
The price will be very strong in the future. Within a month,
the next price target is $1,650," said Yukuji Sonoda, precious
metals analyst at Daiichi Commodities in Tokyo.
Miners in South Africa, the world's largest platinum
producer, have had to deal with electricity outages as power
utilities struggled to keep up with rising demand.
Lonmin Plc, the world's No.3 platinum producer, cut its
sales outlook for the year after first-quarter refined platinum
output slid by nearly a fifth due to safety shutdowns and
persistent processing problems.[]
Sonoda said expectations of further U.S. interest rates
cuts, which have underpinned a recovery in stocks markets after
a rout at the start of the week, have encouraged investors to
buy commodities.
"That's a very good environment. By the end of June, gold
will reach $1,000," said Sonoda, who also expected more
investors to shift to gold from government bonds.
Gold had tumbled to a three-week low of $849.50 on Tuesday
as falling energy and equity prices forced investors to sell
the metal to cover margin calls, but the Dow Jones Industrial
Average has since recorded two consecutive days of gains on
hopes for interest rate cuts and a fiscal stimulus package.
Fed policy makers are scheduled to meet on Jan. 29-30. A
hefty emergency rate cut this week boosted sentiment in
precious metals.
"Gold still has a chance to break a new high. But if it's
rising too fast, we may look for a correction. After breaking
the high, we may look at $950," said Ronald Leung, director of
Lee Cheong Gold Dealers in Hong Kong.
Gold could find solid support at around $908 an ounce on
Friday and resistance was seen at $915 -- just above last
week's historic highs, said Leung.
The euro edged up to $1.4775 <EUR=>. Oil <CLc1> extended
its rally towards $90 a barrel after U.S. lawmakers confirmed
an economic stimulus plan that helped quell fears of a
recession.
The benchmark platinum futures contract for December
delivery <0#JPL:> on the Tokyo Commodity Exchange rose by its
daily 120 yen limit to 5,350 yen a gram.
COMEX gold futures extended gains, with the most active
February contract <GCG8> rising $4.6 an ounce to $910.4.
Silver <XAG=> gained to $16.36/16.41 an ounce from
$16.35/16.40. Palladium <XPD=> rose to $372.00/377.00 an ounce
from $370.50/375.50.
Precious metals prices at 0214 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 909.50 2.50 +0.28 9.22
Spot Silver 16.35 -0.03 -0.18 10.70
Spot Platinum 1616.00 7.00 +0.44 6.32
Spot Palladium 372.00 1.00 +0.27 1.09
TOCOM Gold 3162.00 96.00 +3.13 3.33
46641
TOCOM Platinum 5350.00 120.00 +2.29 0.21
6970
TOCOM Silver 567.80 16.70 +3.03 4.95
591
TOCOM Palladium 1307.00 37.00 +2.91 -3.26
424
Euro/Dollar 1.4764
Dollar/Yen 107.24
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)
