(Recasts, updates with quotes, closing prices, market
activity)
By Frank Tang and Lewa Pardomuan
NEW YORK/LONDON, May 22 (Reuters) - Gold ended 1 percent
lower in volatile trade on Thursday, as investors booked
profits after gold hit its highest level in more than a month
above $930.
With crude oil down sharply from a record high, spot gold
<XAU=> was at $917.60/918.80 an ounce by New York's last quote
at 2:15 p.m. EDT (1815 GMT), down from $928.55/929.75 an ounce
late in New York on Wednesday.
In early trading, gold jumped to $935.30, its highest level
since April 18, as crude oil roared to an all-time high above
$135 a barrel.
But a surprise drop in U.S. jobless claims data boosted the
dollar and sparked selling in oil and other commodities. U.S.
crude futures <CLc1> emded $2.36 lower at $130.81 a barrel.
Gold remained more than $100 away from the record high of
$1,030.80 an ounce hit on March 17, and many analysts were
optimistic about the market's upside.
"I think the confidence is back in the market. We broke
$900, we broke $930," said Frederic Panizzutti, metals analyst
at MKS Finance.
"So definitely we see some potential for higher levels
again. The psychological (resistance) is $950, then probably
$980 and there is of course the psychological $1,000 level."
U.S. gold futures for June delivery <GCM8> on the COMEX
division of the New York Mercantile Exchange settled down
$10.30, or 1.1 percent, at $918.30 an ounce. They rose to $933
an ounce on Wednesday, their highest level since April 22.
Jonathan Jossen, independent COMEX floor trader in New
York, said gold futures weakened after a big institutional
investor sold heavily on the floor in early trade.
Jossen said the June contract first ran into resistance at
$935 an ounce, and could still fall sharply in the near term
following possible profit-taking in crude oil.
"There's not much activity in the physical market. Jewelers
seem happy to buy around the $900 level," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong. "I think
there are only speculators and investors in the market."
During the rally in early trading, jewelers sold more scrap
gold to dealers and trade houses. Industry buying, notably by
the electronics sector, remained steady. []
Spot platinum <XPT=> fell to $2,159/2,179 on ounce from
$2,188.50/2,208.50 ounce late in New York on Wednesday, having
earlier hit a two-month high at $2,216 an ounce.
Precious metals refiner Johnson Matthey <JMAT.L> said this
week that platinum, used in jewelry and auto catalysts, could
spike to a record high of $2,500 this year on supply worries.
Platinum struck a record high of $2,290 on March 4 after a
power crisis in main producer South Africa disrupted mining.
Spot silver <XAG=> fell to $17.95/18.02 an ounce from
$18.01/18.09 in late New York on Wednesday. Spot palladium
<XPD=> dropped to $448.00/456.00 an ounce from its Wednesday
finish of $454/462 an ounce.
(Editing by David Gregorio)
