* Launch of new investment vehicles drive PGM buying
* SPDR Gold holdings steady at 1,119.541 tonnes
(Recasts, updates comments and prices, adds LONDON to
dateline)
By Miho Yoshikawa and Humeyra Pamuk
TOKYO/LONDON, Jan 12 (Reuters) - Platinum jumped to a
17-month high on Tuesday, lifting palladium to its highest since
July 2008 as the launch of new investment vehicles triggered
investment and speculative buying.
Gold prices were slightly higher in early European trade,
hovering within striking distance of a five-week high of
$1,1161.50 an ounce hit on Monday and taking its cue from
currency markets.
The launch of platinum- and palladium-backed exchange-traded
funds on the New York market has given U.S. investors their
first opportunity to invest in the metals via an ETF.
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Spot platinum <XPT=> hit $1,622.50 an ounce, its highest
since August 2008 and was at $1,620 an ounce by 0816 GMT, versus
$1,591.50 an ounce late in New York on Monday.
Spot palladium <XPD=> also rose to $439 an ounce, its
highest since July 2008 and was last at $438.50 an ounce versus
Monday's $431 an ounce.
"The news on the ETFs have put the PGM metals in focus,"
said Wolfgang Wrzesniok-Rossbach, head of sales at Heraeus.
"This has shown that they could be another alternative
investment."
The new U.S. funds, operated by a U.S. subsidiary of
London's ETF Securities, started trading on Jan. 8 on the NYSE
Arca platform of the New York stock exchange.
Anticipation of recovery from the car industry has also
bolstered the prospects for platinum, which is used in auto
catalysts used to clear car exhaust fumes.
EYES ON CURRENCIES
Gold prices were slightly higher at $1,156.10 an ounce
versus $1,151.10 an ounce late in New York on Monday, when it
touched a five-week high of $1.161.50 on Monday after
worse-than-expected U.S. jobs data sent the dollar lower.
Data on Friday showed U.S. employers cut 85,000 jobs in
December, disappointing investors who were expecting a quicker
turnaround for the world's largest economy.
On Tuesday the dollar jumped against the yen and the euro
after an official from China's sovereign wealth fund said the
U.S. currency had hit bottom. []
But the greenback quickly reversed those gains after the
official said the comments were only his personal view,
prompting some investors to drop the currency. []
"The market's focus was on a U.S. rate hike taking place
sooner rather than later but that view receded, causing the
dollar to fall, which was positive for gold," said Shuji Sugata,
a manager at Mitsubishi Corp Futures Ltd.
He said gold prices would likely continue to take their cue
from the currency market.
"I think the view of an imminent rate hike has receded, and
this suggests that gold's bottom price may be quite solid,"
Sugata added.
Higher U.S. interest rates boost the dollar and put pressure
on gold, which is often used as a dollar alternative.
U.S. gold futures for February delivery <GCG0> were at
$1,157.5, up 0.54 percent from Monday's close of $1,151.40 on
the COMEX division of the NYMEX.
The world's largest gold-backed exchange-traded fund, SPDR
Gold Trust <GLD>, said its holdings stood at 1,119.541 tonnes as
of Jan. 11, unchanged from the previous business day. []
(Editing by Sue Thomas)
