(Updates prices)
By Lewa Pardomuan
SINGAPORE, June 13 (Reuters) - Gold rebounded on Friday as
investors sought bargains after prices dropped to near a 6-week
low the previous day on a firmer U.S. dollar, but the $900
resistance level remains a tough one to crack.
Gold <XAU=> rose to $871.70/872.70 an ounce from
$867.55/869.55 late in New York on Thursday, when it fell to as
low as $856.80, its lowest since May 2.
Gold has lost more than 4 percent in value this week since
hitting a near 2-week high of $908.70 on Monday. It is well
below a record high of $1,030.80 hit in mid-March.
Bullion was likely to track movements in currencies and
energy markets, where record crude prices have boosted its
appeal as a hedge against inflation. Silver was also off a
6-week low, while platinum and palladium firmed.
"Given that inflation is a global problem at the moment, I
suspect there's a chance for gold to remain well bid and then
possibly push back up towards $900 at some point," said Darren
Heathcote of Investec Australia in Sydney.
"Unless, of course, the dollar manages to add a significant
amount of strength to its current position."
The dollar held on to gains against the euro after strong
U.S. retail sales data supported expectations for two or more
U.S. interest rate hikes this year. <USD/>. In theory, higher
rates reduce gold's appeal as an alternative investment.
Investors expect more dollar-supportive comments from U.S.
Treasury Secretary Henry Paulson at a Group of Eight (G8)
finance ministers meeting later on Friday.
"There's a bit of Japanese buying, but it looks like people
don't want to do much ahead of the G8 meeting. We don't hear
much interest from other regions," said a bullion dealer in
Hong Kong.
"I guess $875 will be a tough barrier for the upside, while
$868 will the downside. That's the range," he added.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange added $1.7 an
ounce to $873.7.
U.S. crude oil <CLc1> was off 18 cents at $136.56 a barrel
by 0240 GMT, but still within sight of last week's record
$139.12.
"I think we've support around $862-$864 an ounce. As far as
today is concerned, probably around $869-$870 is the current
support level," said Investec Australia's Heathcote. "The
reason gold has remained relatively buoyant in the last year or
two is still there. Inflation is a big concern."
The most active Tokyo platinum contract for April 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange ended the
morning session up 44 yen per gram at 6,879 yen.
Spot platinum <XPT=> rose to $2,019.00/2,039.00 an ounce
from $2,010.50/2,030.50 late in New York.
Silver <XAG=> edged up to $16.54/16.60 an ounce from
$16.44/16.54. Spot palladium <XPD=> rose to $435.00/443.00 an
ounce from $433.50/441.50.
Precious metals prices at 0228 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 871.75 3.85 +0.44 4.69
Spot Silver 16.54 0.11 +0.67 11.98
Spot Platinum 2019.00 8.50 +0.42 32.83
Spot Palladium 435.00 0.00 +0.00 18.21
TOCOM Gold 3047.00 13.00 +0.43 -0.42
11730
TOCOM Platinum 6879.00 44.00 +0.64 28.84
7758
TOCOM Silver 580.80 0.60 +0.10 7.36
211
TOCOM Palladium 1535.00 42.00 +2.81 13.62
1322
Euro/Dollar 1.5446
Dollar/Yen 107.71
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by)
