(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 22 (Reuters) - Gold dropped on Thursday
after hitting a record high the previous day, while platinum
matched its historic high as persistent supply problems in
South Africa triggered another round of speculative buying.
Gold <XAU=> fell to $943.30/944.10 an ounce from
$944.40/945.20 an ounce late in New York. On Thursday, it
rallied to $953.60, its highest level ever, before a sharp
decline in crude oil erased much of the day's gains.
But dealers said the prospect of more rate cuts in the
United States supported gold's appeal as an alternative
investment and kept the upward momentum intact. Silver held
below a 27-year high and palladium hovered near its best level
in more than six years.
"The next probable stop in gold is around $955 and that is
likely to be witnessed in coming days. Beyond that, $970 and
$980 also seem possible," said Pradeep Unni, an analyst at
Vision Commodities in Dubai.
Gold could also undergo a correction but a price dip would
attract bargain hunting and buying interest from main consumer
India ahead of the busy marriage season in April when demand
for gold jewellery picked up, he said.
"Momentum is showing no signs of cooling and any pullback
will ideally trigger fresh buying interest. The risk is quite
high at such high levels but as long as gold trades above the
$930 levels, a major slide is unlikely."
Crude oil <CLc1> extended falls on Friday after dropping
more than $1 the previous day asgrowing inventories and weak
economic data in the United Statesfueled concern that demand
may soften in the world's largest oil consumer.
Spot platinum <XPT=> rose as high as $2,182 an ounce,
matching Thursday's record high, and up from $2,151/2,161 late
in New York.
"People are happy to buy at lower levels," said Ronald
Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding
that there were also purchases from auto makers.
"We don't know what the higher levels are, maybe $3,000 or
$4,000. The only thing is that it seems people are happy to
buy. That's all," he said.
Platinum, used in jewellery and auto catalysts, has jumped
more than 40 percent this year after mines in South Africa,
accounting for 80 percent of world output, were shut for five
days at the height of last month's power crisis.
South African power utility Eskom said it had contracted 30
million tonnes coal of the 45 million tonnes it needs over the
next two years to help resolve a crippling power crisis.
The dollar was within sight of a two-week lows versus the
euro after data showing the weakest regional factory activity
since the last U.S. recession in 2001 boosted expectations for
a large Federal Reserve interest rate cut. []
Japanese platinum futures hit a new record high. The most
active December contract <0#JPL:> on the Tokyo Commodity
Exchange ended the morning session 79 yen per gram higher at
7,284 yen.
Palladium <XPD=> rose to $511/516 an ounce from $510/515 an
ounce but off Thursday's 6-1/2-year high of $525 an ounce.
Silver <XAG=> edged up to $17.85/17.90 an ounce from
$17.84/17.89 an ounce -- off Thursday's 27-year high of $18.03
an ounce.
Precious metals prices at 0238 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 944.40 0.10 +0.01 13.41
Spot Silver 17.86 0.02 +0.11 20.92
Spot Platinum 2178.00 27.00 +1.26 43.29
Spot Palladium 511.00 1.00 +0.20 38.86
TOCOM Gold 3284.00 -16.00 -0.48 7.32
29386
TOCOM Platinum 7284.00 79.00 +1.10 36.43
16645
TOCOM Silver 622.40 -4.00 -0.64 15.05
442
TOCOM Palladium 1804.00 30.00 +1.69 33.53
8172
Euro/Dollar 1.4801
Dollar/Yen 107.36
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by )
