(Corrects headline and reference to gold's intraday low to
eight-week low, not seven-week low)
* Gold hits lowest in 8 weeks on rising dollar
* Platinum off lows on bargain hunting
(Updates prices to afternoon)
By Lewa Pardomuan
SINGAPORE, Aug 8 (Reuters) - Gold tumbled to an 8-week low
in volatile trade on Friday, losing some of its shine as an
alternative investment after the dollar jumped against the
euro, prompting some investors to switch funds back into
currencies.
Platinum bounced off lows but fears of supply curbs
following a one-day strike in main producer South Africa
subsided. Silver was down, while palladium still attracted
bargain hunting after falling to its lowest level in eight
months this week.
Gold <XAU=> hit a high of $873.50 an ounce before dropping
back to $868.80/869.80 an ounce, down $871.05/872.45 an ounce
late in New York. The metal also hit an intraday low of $866.25
an ounce, an 8-week trough, on selling pressure from the rising
dollar.
"In the absence of commodity-type news, I think the market
is probably going to be weaker. I think it's mainly
dollar-dominated today," said Mark Pervan, an ANZ senior
commodity analyst.
"I think around $850 would be a critical level," said
Pervan, who pegged resistance at $900.
Gold has dropped more than 15 percent in value since
spiking to a record high of $1,030.80 hit in March.
The euro fell as far as $1.5195, a five-month low, after
European Central Bank President Jean-Claude Trichet cooled
expectations for an interest rate hike by sounding a note of
concern over the slowing euro zone economy. []
"People get out of the market. Jewellery makers are waiting
for a good time to buy, so actual demand is not so good. The
same goes for platinum," said Yukuji Sonoda, a precious metals
analyst at Daiichi Commodities in Tokyo.
"I had thought gold will stabilise at $900. People are
disappointed," he said.
Spot platinum <XPT=> rose to $1,576.00/1,596.00 an ounce
from $1,572.00/1,592.00 late in New York on bargain hunting
after falling as low as $1,564.50 an ounce earlier in the day.
Eearly bargain buying from speculators in Tokyo futures
helped trigger gains in the cash market but dealers said
automakers remained on the sidelines.
"As for platinum, $1,550 may be the next target. If you
compared with Johnson Matthey's forecast, this is incredibly
cheap," said Sonoda of Daiichi Commodities.
Platinum prices have taken a dramatic turn since spiking to
a record high at $2,290 an ounce in early March, losing much of
their gains to profit taking and a slowing U.S. economy that
threatens to slash demand for autocatalysts.
The current price was well below the target of $2,500
forecast in May by Johnson Matthey <JMAT.L>, the world's
largest platinum refiner and distributor, citing output
shortfalls and strong demand.
The bulk of the world's platinum is used by automakers in
autocatalyst systems that scrub exhaust fumes of dangerous and
environmentally-damaging chemicals.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Comodity Exchange fell 23 yen
per gram to 5,532 yen -- off an intraday high of 5,556 yen.
New York gold futures <GCZ8> fell $0.7 to $877.20 an ounce.
Spot palladium <XPD=> rose to $345.00/350.00 an ounce from
$344.00/352.00 late in New York. Silver <XAG=> edged down to
$16.09/16.16 an ounce from $16.14/16.23.
Precious metals prices at 0410 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 869.65 -1.55 -0.18 4.44
Spot Silver 16.11 -0.05 -0.31 9.07
Spot Platinum 1573.00 1.00 +0.06 3.49
Spot Palladium 345.00 2.00 +0.58 -6.25
TOCOM Gold 3088.00 -32.00 -1.03 0.92
30441
TOCOM Platinum 5529.00 -26.00 -0.47 3.56
12324
TOCOM Silver 572.80 -17.00 -2.88 5.88
773
TOCOM Palladium 1242.00 -23.00 -1.82 -8.07
251
Euro/Dollar 1.5226
Dollar/Yen 109.64
TOCOM prices in yen per gram, except TOCOM silver which is
riced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Michael Urquhart)
