(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 13 (Reuters) - Gold extended losses on
Wednesday after a rise in stock markets and news of reduced
purchases by India ignited selling, while platinum fell as
investors booked profits at record high prices.
Gold <XAU=> hit a high of $909.70 an ounce on bargain
hunting but then dropped to $904.20/904.90 an ounce. It was
last quoted at $907.70/908.50 in New York on Tuesday -- off
from an all-time high of $936.50 it hit in early February.
"There are a few good factors coming back to the financial
markets. That's why people are off loading gold for now. It's
basically shifting funds from one financial market to another,"
said a dealer in Singapore.
"Warren Buffett has said he would like to reinsure all the
municipal bonds and that has given a boost to equity markets."
Billionaire investor Warren Buffett said on Tuesday he had
offered to reinsure $800 billion of muni debt guaranteed by
bond insurers, easing some worries about further fallout from
the credit crisis. []
Tokyo's Nikkei share average <> jumped 1.4 percent in
early trade, tracking gains on Wall Street.
India's gold imports in January slumped to just five tonnes
from 62 tonnes in the same month a year ago as a surge in
prices caps demand in the world's largest consumer, according
to the Bombay Bullion Association. []
But dealers said investment buying, record-high crude oil
<CLc1>, volatile stock markets, a struggling U.S. dollar and
the prospect of more interest rate cuts in the United States
would offer support for gold.
"It certainly will be possible for the gold price to spike
still higher. I think it's premature to say that we've seen the
peaking gold prices," said David Moore, a commodity analyst at
the Commonwealth Bank of Australia in Sydney.
"There's still some investor interest in gold," he said.
COMEX's April gold futures <GCJ8> fell $3.2 an ounce to
$907.9 an ounce.
"The market maybe at the lower range for the week. There's
a good chance we will bounce off from the $900 level and try
$935 again," said William Kwan, a dealer at Phillip Futures in
Singapore.
"Platinum is also hit by profit-taking," he said.
Platinum <XPT=> fell to $1,907/1,912 an ounce from
$1,920/1,925 in New York on Tuesday, when it rallied to a
record high of $1,965 on supply concerns in South Africa after
a power crisis disrupted mining in the world's main producer.
Japanese platinum futures were also off record highs, with
the most active December contract <0#JPL:> on the Tokyo
Commodity Exchange ending the morning session 85 yen per gram
lower at 6,298 yen.
Palladium <XPD=> fell to $423/427 an ounce from $434/437 an
ounce late in New York and off Tuesday's 6-year high of $447 an
ounce.
Silver <XAG=> edged down to $17.05/17.10 an ounce from
$17.13/17.18 in New York -- off Tuesday's 27-year high of
$17.60 an ounce.
Precious metals prices at 0241 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 903.90 -2.10 -0.23 8.55
Spot Silver 17.04 -0.13 -0.76 15.37
Spot Platinum 1907.00 -3.00 -0.16 25.46
Spot Palladium 423.00 -11.00 -2.53 14.95
TOCOM Gold 3141.00 -58.00 -1.81 2.65
39300
TOCOM Platinum 6298.00 -85.00 -1.33 17.96
31516
TOCOM Silver 591.10 -17.80 -2.92 9.26
731
TOCOM Palladium 1485.00 -76.00 -4.87 9.92
3362
Euro/Dollar 1.4583
Dollar/Yen 107.08
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Sambit Mohanty)
