* Gold extends losses but may find support at $800
* Platinum tracks weaker gold
* Strong dollar, weaker oil depresses bullion
(Updates prices, adds quotes)
By Lewa Pardomuan
SINGAPORE, Aug 25 (Reuters) - Gold fell 1 percent on
Monday, losing some of its safe-haven appeal as the U.S. dollar
strengthened against other currencies, while weaker oil prices
also prompted investors to ditch their bullion holdings.
But the metal could find support around $800 an ounce, with
the help of buying from jewellers ahead of the festive seasons
especially in main consumer, India. Dealers also reported tight
supply for gold bars in Singapore and Hong Kong.
Gold <XAU=> slipped to $818.70/819.70 an ounce from
$827.00/828.60 an ounce late in New York on Friday, but was off
nine-month lows of around $773 hit in mid-August.
"I guess the $800-psychological level support will come
into play again. I believe physical demand for gold is likely
to remain good and perhaps the shortage may support the market
a bit," said Adrian Koh, analyst at Phillip Futures in
Singapore.
"If we start moving below $810, we will probably move to
$800 very soon and perhaps gold could retest to the $770s
again," he said.
Oil <CLc1> was steady at $114.60 a barrel, having fallen
5.4 percent on Friday, the biggest one-day drop in percentage
terms since Dec. 27, 2004, as supply concerns waned. []
Tensions between the United States and Russia, the world's
second-biggest oil producer, would continue to lend support to
prices until Moscow withdraws its troops completely from
Georgia, analysts said.
"Oil fluctuates every day, but $110 is the bottom price,"
said Yukuji Sonoda, precious metals analyst at Daiichi
Commodities in Tokyo, adding that investors would watch oil for
direction.
"Jewellery demand from Italy and India will gradually
improve. $800 will be maintained," he said.
Demand for gold in India normally picks up ahead of Diwali,
the Hindu festival of lights in October, as people buy gold for
auspicious reasons. Also, many Hindu marriages are likely to be
held between September and November, said dealers.
New York gold futures <GCZ8> lost $8.1 an ounce to $825.40.
The dollar extended gains, hitting a two-year high against
sterling after data last week showed Britain's economy was
stalling, raising the prospect for monetary easing by the Bank
of England. []
Comments by influential investor Warren Buffett that he has
no bets against the dollar also added to the dollar's upward
momentum. []
Spot platinum <XPT=> dropped to $1,394.00/1,414.50 an ounce
from $1,425.50/1,445.50 an ounce late in New York but was off
an 11-month low around $1,296 hit last week.
"Near-term support for platinum should come in around the
$1,350-level, and if we do move below those levels, we could
see another bout of selling towards $1,250 to $1,300," said Koh
of Phillip Futures.
Spot palladium <XPD=> inched down to $280.00/288.00 an
ounce from $285.00/293.00 an ounce. Silver <XAG=> fell to
$13.16/13.22 an ounce from $13.33/13.41 an ounce late in New
York.
The most active Tokyo gold contract for June 2009 delivery
<0#JAU:> on the Tokyo Commodity Exchange ended the morning
session 22 yen per gram lower at 2,915 yen.
Precious metals prices at 0221 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 819.55 -2.55 -0.31 -1.58
Spot Silver 13.17 -0.15 -1.13 -10.83
Spot Platinum 1399.00 -26.50 -1.86 -7.96
Spot Palladium 280.50 -2.50 -0.88 -23.78
TOCOM Gold 2915.00 -22.00 -0.75 -4.74
17968
TOCOM Platinum 4914.00 -172.00 -3.38 -7.96
13147
TOCOM Silver 471.20 -11.10 -2.30 -12.90
502
TOCOM Palladium 1013.00 -24.00 -2.31 -25.02
236
Euro/Dollar 1.4730
Dollar/Yen 110.15
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by)
