*Gold above $900 as oil uptick sends prices higher
*Uncertainty, rising inflation benefit gold
*Platinum edges lower after Wednesday's rally
(Recasts, updates prices)
LONDON, June 19 (Reuters) - Gold climbed back through $900
an ounce on Wednesday to a new 10-day high as a pick-up in oil
prices, which sparked buying of gold as an inflation hedge, sent
the precious metal through key technical levels.
Gold reached a peak of $907.70, its highest since June 9,
before easing with oil to trade at $904.30/905.70 at 1421 GMT,
against $890.75/891.95 late in New York on Wednesday.
"(Gold) has been threatening this for the last few days,"
said Simon Weeks, director of precious metals trading at Scotia
Capital.
"Gold is starting to find its feet, given the global
(inflationary) environment we are in, and given what we have
seen coming out in terms of U.S. data releases," he added.
"General sentiment is good."
The metal shrugged off a firmer U.S. dollar on Thursday, as
other factors took over. A brief move higher in oil prices was
enough to start the precious metal's rally on Wednesday.
Rising fears over inflation on both sides of the Atlantic
and uncertainty over the outlook for currency and equity markets
are boosting gold, which is a popular safe haven for funds.
The metal has historically benefitted from economic turmoil,
and the threat of recession hanging over the United States in
the past year. Concerns over the health of equity markets have
also firmly underpinned the metal.
Gold reached an all-time high of $1,030.80 in March as the
weak dollar, rising oil prices and concerns over the economic
outlook spurred buying.
The technical picture is looking good for gold, analysts
said, with another close above $888 seen as giving the precious
metal a solid floor for an upward move.
POWER
Platinum prices eased as traders took profits after the
white metal climbed 1.5 percent on Wednesday.
The metal rallied after a South African official warned the
country could face a "very severe energy crisis" if state power
utility Eskom failed to raise sufficient funds to bankroll
development.
Eskom also won approval yesterday to hike its tariffs by an
additional 13.3 percent in 2008/2009.
Johannesberg-based Standard Bank analyst Walter de Wet said
that while higher power tariffs are likely to be absorbed by
producers and should not have much impact on price, any sign
that mines will receive less power could boost the market.
"While cost-wise, electricity might have a small effect,
production-wise it is essential," he said. "In this regard,
mines have committed to cutting electricity consumption,
irrespective of Eskom's power-rationing measures."
Spot platinum was down at $2,048.00/2,068.00 an ounce from
$2,080.50/2,100.50 on Wednesday. It rallied to $2,103.50 an
ounce in the last session, its highest since May 28.
Spot palladium climbed to $470.00/478.00 an ounce from
$466.00/474.00 on Wednesday. Silver rose to $17.52/17.58 an
ounce from $17.33/17.43.
(Reporting by Jan Harvey: Editing by Peter Blackburn)
