* Renewed haven buying lifts gold on weak earnings outlook
* Gold to hit $1,100 in 2009 - GFMS
(Recasts with updated prices, U.S. comment. Dateline changed
to NEW YORK from LONDON)
By Carole Vaporean
NEW YORK, April 7 (Reuters) - Gold prices rebounded on
Tuesday as investors sought shelter from what is expected to be
another gloomy season of corporate earnings, analysts said.
Gold also got a lift from a forecast from metals
consultancy GFMS for prices to climb above $1,100 an ounce this
year amid financial uncertainty around the globe.
Spot gold <XAU=> climbed to $880.90/882.50 a troy ounce by
4:50 p.m. EDT (2150 GMT), against $868.80 late Monday in New
York. Gold fell as low as $864.30 on Monday, its lowest point
since Jan. 23.
In New York, gold for June delivery <GCM9> closed $10.50,
or 1.20 percent, higher at $883.30 an ounce on the COMEX
division of the New York Mercantile Exchange.
Analysts said GFMS's positive price projections gave a
healthy lift to gold, which had headed lower in early trading.
The annual report said fears about rising inflation,
potential dollar weakness, and fears over financial instability
all supported gold. []
Gold prices are still down about 12 percent from an
11-month high above $1,000 hit in February. But analysts said a
dose of reality on the overall vulnerability of the global
economy could well see it topping the $1,000 mark again.
Expectations for another lousy corporate earnings period
drew safe-haven investors back into the dollar as well as
gold.
"Gold's performance today is impressive, even more so given
that the dollar has strengthened," said Citi analyst David
Thurtell.
"Perhaps people who are keen on the whole gold story as a
safe haven are thinking it hasn't been this cheap in a long
time."
The dollar advanced as a decline in global equity markets
drew investors seeking a haven ahead of what is expected to be
a weak season for corporate results. []
Falling bullion prices prompted India to buy some gold
early in the global session, raising hopes the world's largest
consumer could be looking for more during the wedding season,
dealers said. []
Though some traders said gold may have been oversold, the
metal remains vulnerable for now to any signs of investors
shifting money into other assets.
"Although investor sentiment remains positive towards the
metal, ETF flows have slowed and prices have been hit with
profit-taking," Barclays Capital said in a note.
"The surge in investment demand had offset the slowdown in
jewellery consumption but now prices remain dependent upon
either further investment demand inflows or resumption in
physical fabrication demand."
PLATINUM, PALLADIUM RISE
In other metals, spot platinum <XPT=> rose to
$1,161.0/1,171.0 an ounce in late New York trade from $1,140.50
on Monday.
Platinum got a boost from prospective investment demand
after Monday's news that a unit of London's ETF Securities had
filed with the Securities and Exchange Commission to register
platinum and palladium trusts in the United States.
[]
"If approved (this) could trigger significant price gains
again, but is likely to see significant opposition from the
mining sector as well as industrial and auto users," James
Moore of TheBullionDesk.com said in a note to clients.
Palladium also pulled off the session high to
$223.00/228.00 by 2:50 p.m. EDT (1850 GMT) from $221 on Monday,
while silver <XAG=> was higher at $12.24/12.31 than $12.10 on
Monday.
(Additional reporting by Veronica Brown, Pratima Desai and Jan
Harvey; Editing by Lisa Shumaker)
