(Updates prices)
SINGAPORE, July 18 (Reuters) - Gold fell below $960 an
ounce on Friday on a recovery in stock markets and recent
weakness in oil, while platinum dropped to its lowest level in
more than two months on fears about falling demand for
autocatalysts.
But uncertainty over the U.S. financial system and fears of
military confrontation between Iran and Israel that has sent
oil to record highs would still support gold, said Yukuji
Sonoda, precious metals analyst at Daiichi Commodities.
Gold <XAU=> fell to $955.60/958.50 an ounce from
$962.10/963.10 an ounce late in New York on Thursday -- off a
four-month high of $987.75 an ounce hit on Tuesday.
"As long as there's this possibility, the oil price will
not decrease that much. This is also a good support for gold.
Gold's bottom price is $900 and for oil, it is maybe $120," he
said.
Oil <CLc1> added 87 cents to $130.16 a barrel after falling
more than $5 a day in previous session on growing worries over
U.S. demand. []
Investors buy gold as a hedge against inflation, and fears
of rising energy costs helped propelled the metal to a lifetime
high of $1,030.80 in March.
Tensions between with Iran and the West have intensified,
particularly since Tehran tested missiles last week, pushing up
oil prices, rattling Israeli nerves and prompting Washington to
say it would defend its allies against any possible attack.
Japan's Nikkei average rose 0.22 percent as a softer yen
lifted exporters. In theory, strong equity markets dim gold's
appeal as an alternative investment.
Spot platinum <XPT=> fell $1,858.50/1,878.50 an ounce from
$1,881/1,901 an ounce late in New York on Thursday, having hit
an intraday low of $1,858.00 an ounce -- its lowest level since
May 2.
Platinum was hit by a gloomy outlook for the global economy
which deepened fears over demand from carmakers for
autocatalysts, of which the white metal is a major component.
"There's high possibility that General Motors will go
bankrupt. That's incredible," said Sonoda of Daiichi
Commodities.
Platinum could fall as low as $1,800 before picking up
again, with the help of a recovery in gold prices, he said.
General Motors Corp <GM.N> announced on Wednesday a
sweeping plan to cut $10 billion in costs over through 2009 and
to sell up to $4 billion in assets in order to shore up its
liquidity.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange fell $12.5 an
ounce to $958.2.
The most active Tokyo platinum contract for June 2009
delivery <0#JPL:> on the Tokyo Commodity Exchange fell 218 yen
per gram to 6,288 yen.
Spot palladium <XPD=> rose to $421.00/426 an ounce from
$420.00/428.00 an ounce. Silver <XAG=> rose to $18.52/18.58 an
ounce from $18.39/18.48 late in New York.
Precious metals prices at 0158 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 957.00 0.40 +0.04 14.93
Spot Silver 18.52 0.02 +0.11 25.39
Spot Platinum 1864.50 -16.50 -0.88 22.66
Spot Palladium 421.00 1.00 +0.24 14.40
TOCOM Gold 3300.00 7.00 +0.21 7.84
21389
TOCOM Platinum 6283.00 -223.00 -3.43 17.68
15525
TOCOM Silver 639.80 -3.50 -0.54 18.26
282
TOCOM Palladium 1466.00 -31.00 -2.07 8.51
568
Euro/Dollar 1.5833
Dollar/Yen 106.31
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Ben Tan)
