(recasts, adds quotes, changes prices, pvs SINGAPORE)
By Karl Plume
LONDON, May 29 (Reuters) - Platinum fell more than 4 percent
to a three-week low under $2,000 an ounce on Thursday as gold
edged lower on a firmer dollar and weaker oil, which lessened
the yellow metal's appeal as an anti-inflation tool.
Spot gold <XAU=> was quoted at $892.10/893.10 an ounce at
1016 GMT, down from $899.65/901.05 in New York late Wednesday.
Platinum hit a three-week low of $1,974 and was last quoted
at $1,985.50/2,005.50, versus $2,059/2,079 late in New York.
"Platinum has done really well over the last six months but
the dollar's strength could be leading to some profit taking,"
said BNP Paribas analyst David Thurtell, adding that sell-stops
were likely to be triggered below the $2,000 an ounce mark.
Gold held below $900 an ounce on continuing dollar firmness.
"The dollar is substantially stronger and that has had an
impact on the price this morning," said David Holmes, director
of precious metals sales at Dresdner Kleinwort.
A further rise in oil prices could support the market, but
bullion investors were cautious in trading gold on the back of
oil, which had been volatile recently, Holmes said.
The dollar rose against a basket of major currencies
following Wednesday's U.S. durable goods data which came in less
weak than expected, giving some respite to investors worried
about U.S. economic health.
A firmer dollar makes gold costlier for holders of other
currencies and often lowers bullion demand. The metal is also
generally seen as a hedge against oil-led inflation.
Oil fell to around $130 on signs that a demand slowdown in
some markets may spread as major Asian consumers review their
fuel subsidy policies.
U.S. DATA AWAITED
Investors will be looking for a clearer picture on the
health of the U.S. economy in Thursday's revised U.S. first
quarter GDP figures and jobless claims data.
"Traders are likely to closely monitor today's GDP reading,
with signs of improved growth potentially triggering a deeper
correction back towards $850, while a contraction in growth
should enable gold to form a base above $900," James Moore,
analyst with TheBullionDesk.com, said in a market note.
Gold's advance earlier this month to last week's peak above
$935 an ounce on the back of record oil prices blunted physical
demand for the metal. But demand should heat up again if prices
stay under $900, which has been a psychological support level.
"Physical demand for gold is definitely returning to the
market, certainly sub-$900, and that interest just grows as we
approach $850," Holmes said.
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange were down $6.40 an ounce at
$894.10 an ounce.
Spot silver <XAG=> slipped to $17.27/17.33 an ounce from
$17.37/17.43, while palladium <XPD=> fell to $427.50/435.50 from
$432/$440.
(Reporting by Karl Plume; editing by Peter Blackburn)
