(Updates prices)
By Lewa Pardomuan
SINGAPORE, March 7 (Reuters) - Gold paused for breath on
Friday after a tumble from a record high the previous day, with
investors eyeing U.S. jobs data due later in the day and a
possible test of the $1,000 an ounce level.
Gold <XAU=> firmed to $981.40/982.25 an ounce from
$976.20/976.95 late in New York, where it hit a record $991.90
on dollar weakness before profit taking erased much of the
gains.
Bargain hunters and jewellers were buying on dips but some
investors were on the sidelines ahead of the February U.S. jobs
data, which is forecast to show a rise in jobs after a
surprising loss in January. "There might be some selling
pressure because the market is slightly overstreched. Small
speculators are still trying to pick a top, hedge funds are
still practically quite long," said William Kwan, a dealer at
Phillip Futures in Singapore.
Gold has gained nearly 20 percent in 2008 as funds,
speculators and investors buy the precious metal on
expectations of further interest rate cuts in the United States
and record-high oil, which elevates its safe-haven appeal.
"Looking ahead, we can break $1,000 but it might not be so
sustainable. I do foresee a so-called sharp reversal next week
but most probably we'll see $1,000," Kwan said.
The dollar dropped to an all-time low against a
trade-weighted basket of major currencies, with the dollar
index falling as low as 72.849 <.DXY>.
The Fed is expected to cut its benchmark overnight lending
rate by at least 50 basis points later this month. The fed
funds target rate has been lowered by 2.25 percentage points to
3.0 percent since mid-September.
Silver edged up but stayed below a 27-year high, platinum
bounced after being hit by news that main producer South Africa
will let mines increase power consumption, while palladium
rebounded from a 1-week low.
Greg Wilkins, chief executive of Barrick Gold Corp
<ABX.TO><ABX.N>, the world's largest gold producer, said on
CNBC TVthe company is not going hedge its production with gold
prices almost nudging $1,000 as it expects prices to climb
further. []
Gold futures for April delivery <GCJ8> on the COMEX
division of the New York Mercantile Exchange added $4.0 an
ounce to $981.1 an ounce - off its record high of $995.2 hit on
March 5.
Silver <XAG=> edged up to $20.22/20.27 an ounce from
$20.15/20.18 an ounce, having reached a 27-year peak of $21.20
an ounce on Thursday.
Spot platinum <XPT=> rose to $2,172/2,179 an ounce from
$2,170/2,180 an ounce late in New York.
South Africa said it will let mines increase power
consumption from 90 to 95 percent of normal because the
country's power crisis has stabilised. []
Spot palladium <XPD=> firmed to $514/519 an ounce from
$513/516 an ounce.
Precious metals prices at 0207 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 981.30 3.00 +0.31 17.85
Spot Silver 20.22 0.07 +0.35 36.90
Spot Platinum 2172.00 2.00 +0.09 42.89
Spot Palladium 514.00 1.00 +0.19 39.67
TOCOM Gold 3273.00 -42.00 -1.27 6.96
31939
TOCOM Platinum 7061.00 -246.00 -3.37 32.25
16854
TOCOM Silver 676.20 -23.80 -3.40 24.99
1145
TOCOM Palladium 1812.00 -100.00 -5.23 34.12
1031
Euro/Dollar 1.5375
Dollar/Yen 102.79
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)
