(Corrects analyst's name in paragraph 6 to ... Saito ... not
Fujitomi, which is the company name)
* Gold dips as investors seek to cover losses in other mkts
* PGMs hit by worry euro zone debt crisis will hurt economy
* Coming Up: U.S. ECRI weekly is due at 1430 GMT
By Chikako Mogi
TOKYO, May 21 (Reuters) - Spot gold fell more than 1 percent
to two-week lows as investors sold to cover losses in other
markets, especially as stocks dipped, while platinum group metals
fell on worries euro zone debt crisis will sap industrial demand.
Asian stocks were down, with Japan's benchmark Nikkei average
sliding more than 3 percent and hitting a five-month low as
exporters were hurt after the yen strengthened against the euro
on worries about disunity among euro zone leaders on how to
address the region's debt crisis.
Platinum group metals platinum and palladium extended
declines on worries about weakening industrial demand for these
metals as Europe's debt problems are seen hurting the region's
economy.
"As of now, investors are more focused on selling gold to
cover losses in other assets, particularly as stocks are falling,
than seeing the metal as a safe haven," said Kazuhiko Saito,
chief commodities analyst at futures trading company Fujitomi.
"Gold has risen sharply and after hitting a peak, investors
became wary of the high price levels," he said, adding that gold
has not yet come down enough for investors to buy back again.
"Some are also speculating that governments under fiscal
scrutiny might sell their gold holdings," Saito said.
Spot gold <XAU=> fell to a two-week low of $1,165.50 per
ounce, down 1.3 percent from $1,181.10 an ounce late in New York
on Thursday. Spot gold rose to a record high $1,248.95 an ounce
on May 14.
At current levels gold is down about 5 percent on the week
and set to post its biggest weekly decline since early 2009.
U.S. gold futures for June delivery <GCM0> fell 1.4 percent
to $1,171.80 an ounce from $1,188.60 on the COMEX division of the
NYMEX.
Wakako Harada, a senior trader at Mitsubishi Corp in Tokyo,
said the market currently appears to be in a panic, with
investors feeling they needed to cover losses in other assets hit
by financial turmoil stemming from the euro zone's debt crisis.
"Once this round of selling subsides, investors will think
where it is best to put their money in light of fundamentals,"
helping to support liquid assets such as gold, she said.
Gold prices dropped on Thursday, while palladium plummeted as
much as 10 percent on investor fears that a euro zone debt crisis
could hamper economic growth.
Platinum <XPT=> fell more than 3 percent, extending its fall
after dropping more than 7 percent on Thursday. Palladium <XPD=>
fell as low as $393.00, down nearly 5 percent, before rebounding
to $403.50 per ounce. On Thursday, it dropped 12 percent.
The world's largest gold-backed exchange-traded fund, the
SPDR Gold Trust <GLD>, said its holdings totalled 1,220.152
tonnes as of May 20, unchanged from the previous business day
when they hit a record high. []
U.S. stocks sank nearly 4 percent on Thursday on growing
fears the euro zone's efforts to tackle its sovereign debt crisis
will fall short, jeopardising the global economic recovery. []
The euro rose on Friday as a bout of short-covering extended
after its slide to a four-year low earlier this week. []
PRICES
Precious metals prices at 0301 GMT
Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 1168.90 -12.20 -1.03 6.68
Spot Silver 17.69 0.10 0.57 5.11
Spot Platinum 1468.00 -41.00 -2.72 0.07
Spot Palladium 403.50 -9.25 -2.24 -0.49
TOCOM Gold 3399 -68.00 -1.96 4.30 79218
TOCOM Platinum 4227 -364.00 -7.93 -3.52 48391
TOCOM Silver 52 -1.40 -2.64 0.00 843
TOCOM Palladium 1166 -99.00 -7.83 0.09 1679
Euro/Dollar 1.2575
Dollar/Yen 90.2300
TOCOM prices in yen per gram. Spot prices in $ per ounce.
(Editing by Michael Watson)
