* Platinum up 3 pct before trimming gains
* Gold steady, watching currency markets
* Dollar inches up, oil at 22-month low
(Recasts, updates prices and comments, pvs SINGAPORE)
By Humeyra Pamuk
LONDON, Nov 19 (Reuters) - Platinum held firm after rising
as much as 3 percent on Wednesday after an industry report
predicted demand could still rise and a mine closure triggered
short covering, while gold was steady.
Precious metals traded rangebound, keeping an eye on the
currency markets, as the dollar inched up against a basket of
currencies while falling oil prices capped possible gains of
bullion.
Platinum <XPT=> was trading at $829.00 an ounce by 1055 GMT
after hitting a session high of $850 an ounce earlier and
compared with $824.50 an ounce in New York late on Tuesday, when
it gained around 2 percent.
"Platinum has risen on the combination of short-covering and
people taking the Johnson Matthey report as not perhaps being as
bearish as they might have seen," Tom Kendall, precious metals
strategist at Mitsubishi Corp, said.
Precious metals refiner Johnson Matthey <JMAT.L> said global
demand for platinum catalytic converters would climb 2 percent
in 2008 on higher consumption in Europe and emerging economies,
despite a sharp decline in North America. []
Prices were also supported by news that Lonmin <LMI.L>, the
world's third-biggest platinum producer, would close its
high-cost mines and that it was cutting costs to survive a
market downturn. []
"It is not a big headline grabbing number of ounces but
people look at it and see that there will probably further
action to come from South African producers in terms of
moderating some of their less economic production," Kendall
said.
But analysts do not expect a major recovery in the platinum
price as the demand from the auto sector, which has been
severely affected by the global downturn, remains key.
More than 60 percent of global platinum use goes to
autocatalysts to clean exhaust fumes.
Yukuji Sonoda, precious metals analyst at Daiichi
Commodities in Tokyo, said Johnson Matthey's price range of $700
to $1,400 an ounce for platinum was reasonable but demand
remained in doubt. "There's no actual demand at this moment.
Jewellery and auto companies are not buying."
Despite the gains, fears about the future of the financially
ailing General Motors <GM.N> weighed on the market and could
trigger another bout of selling, he said. "Tomorrow or the day
after, the situation will gradually change," Sonoda said.
Platinum roared to a record $2,290 in March as a power
shortage in main producer South Africa disrupted mining. But
prices have tumbled since then on deteriorating car sales, and
platinum also tracked declines in gold as fears about the global
economic slowdown deepened.
GOLD RANGEBOUND
Gold, whose movements often dictate platinum, held near New
York levels. Spot gold <XAU=> was trading at $736.05 an ounce
versus $736.35 an ounce in New York late on Tuesday.
"For now gold is likely to remain in the current $720-765
range," analyst James Moore at Thebulliondesk.com said, adding
bullion was looking at currency markets for direction.
The dollar was slightly higher against a basket of major
currencies while oil prices fell to a 22-month low. European
shares fell as prospects of a deep global recession continued to
rattle investors.
But gold moves were rangebound. "A lot of the bad news and
policy decisions have now been factored in," Kendall said,
adding the market was waiting for a fresh news for direction.
New York gold futures <GCZ8> rose $3.6 an ounce to $736.3.
Silver <XAG=> was at $9.45/9.53 from $9.60 and palladium
<XPD=> at $211.50/219.50 from $213.
(Editing by Sue Thomas)
