* Gold hits highest in nearly a week as oil rises
* Platinum off multi-month lows
(Updates prices, adds quotes, physical activity)
By Lewa Pardomuan
SINGAPORE, Aug 20 (Reuters) - Gold rose to its highest in
nearly a week on Wednesday after gains in oil prices spurred
buying, which also helped to pluck cash platinum from its
lowest level in nearly a year.
Dealers expected consumers to buy gold on dips and said the
world's largest consumer, India, would step up purchases ahead
of a series of key religious festivals that culminate in
October with Diwali, the Hindu festival of lights.
Gold <XAU=> rose to $813.30/814.30 an ounce from
$810.70/811.90 an ounce late in New York on Tuesday and off
last week's nine-month lows around $773. But the metal was
still well below a lifetime high of $1,030.80 struck in March.
"A volatile price range is expected in a thinner and lower
liquidity trading environment," said William Kwan, bullion
director at Gold Capital Management.
"Any significant selling or buying interestwill easily sway
prices either way and trigger both buy and sell stops orders."
Premiums for gold bars shot to their their highest level
this year as consumers returned to the physical market in
droves, encouraged by a sharp drop in bullion prices ahead of
key religious festivals in Asia. []
"These price levels are acceptable for jewellery makers and
private investors buying on the ETF. From now on, actual demand
will recover," said Yukuji Sonoda, precious metals analyst at
Daiichi Commodities in Tokyo.
"For the time being, $800 is the bottom price," he said.
The bullion holdings of SPDR Gold Trust <GLD.P>, the
world's largest gold-backed exchange-traded fund, dropped to
their lowest level in more than a month around 651 tonnes
<XAUEXT-NYS-TT> but the recent correction in gold prices could
spur new buying.
Oil prices inched up above $115 a barrel as a lower U.S.
dollar rekindled buying in oil and other commodities. []
Spot platinum <XPT=> rose to $1,345.50/1,365.50 an ounce
from $1,344.50/1,364.50 an ounce late in New York, having
fallen to its weakest since last September around $1,296 on
Tuesday.
"Sentiment has been hit since auto makers lowered their
production forecast. The market is also concerned about growing
worries over the outlook of the global economy," said Shuji
Sugata, manager at Mitsubishi Corp Futures and Securities Ltd.
Platinum hit a record high of $2,290 in March after a power
shortage in main producer South Africa disrupted mining and
triggered supply worries. The price has since fallen on profit
taking and a slowing U.S. economy that has raised fears of
falling demand for autocatalysts.
New York gold futures for December <GCZ8> added $2.8 an
ounce to $819.60.
Spot palladium <XPD=> gained to $285.00/293.00 an ounce
from $280.00/288.00 an ounce. Silver <XAG=> rose to
$13.25/13.30 an ounce from $13.15/13.21 late in New York.
The most active Tokyo gold contract for June 2009 delivery
<0#JAU:> on the Tokyo Commodity Exchange rose 98 yen per gram
to 2,894 yen, having fallen to its weakest since late November
in previous session.
Precious metals prices at 0714 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 813.70 0.45 +0.06 -2.28
Spot Silver 13.25 0.04 +0.30 -10.29
Spot Platinum 1348.50 -1.00 -0.07 -11.28
Spot Palladium 285.00 1.50 +0.53 -22.55
TOCOM Gold 2892.00 96.00 +3.43 -5.49
46368
TOCOM Platinum 4739.00 157.00 +3.43 -11.24
22683
TOCOM Silver 472.20 21.90 +4.86 -12.72
1045
TOCOM Palladium 1023.00 52.00 +5.36 -24.28
1100
Euro/Dollar 1.4744
Dollar/Yen 110.04
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Chikafumi Hodo in Tokyo)
(Editing by )
