* Gold off 2-week low after Iran tests missiles
* Gold ETF holdings up
* Oil rises on Iran
(Updates prices)
By Lewa Pardomuan
SINGAPORE, July 9 (Reuters) - Gold regained ground on
Wednesday as speculators resurfaced on news that Iran had test-
fired nine long- and medium-range missiles, lifting the metal's
safe-haven appeal in times of uncertainty.
State media said Iran had test fired missiles, including
one which it had previously said could travel as far as Israel
and U.S. bases in the region, at a time of increased tension
between Iran and Israel over Tehran's disputed nuclear
programme.
Gold <XAU=> hit a low of $915.60 an ounce before bouncing
to $921.15/922.15 an ounce on the Iranian news, steady from
921.35/922.55 an ounce late in New York.
Gold fell as low as $912.50 an ounce on Tuesday, its lowest
level since June 27, on weaker oil and a rebounding U.S.
dollar. Gold was well below a record high of $1,030.80 hit in
March.
"It's not surprising that the market has taken the news as
positive for gold. I think $910 to $912 are going to be
support, on the top side we are looking at $925 as resistance,"
said Darren Heathcote of Investec Australia in Sydney.
"We still have an awful lot of uncertainty out there, which
should help to underpin it for the time being," he said.
Tension is also high between Iran and the United States
over Iran's nuclear programme, which Washington says is aimed
at making an atomic bomb but Tehran says is for generating
energy. There has been media speculation of a possible U.S.
or Israeli military strike against Iran's nuclear facilities.
Gold has hit a lifetime high on record-high oil prices
which raise the metal's appeal as a hedge against inflation and
expectations of more interest rate cuts in the United States,
which lift its appeal as an alternative investment.
The euro rose to $1.5713 <EUR=>following the Iran news,
which also pushed up oil prices by more than $1 a barrel
<CLc1>.
While jewellery makers were on the sidelines, dealers said
gains in bullion held by SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, to 658.99 tonnes, within
sight of a record in March, showed investors' confidence in
gold <XAUEXT-NYS-TT>.
"From an investment perspective, there's still demand
there," said Heatchote of Investec Australia.
Spot platinum <XPT=> firmed to $1,945.00/1,965.00 an ounce
from $1,940.50/1,960.00 late in New York. It hit a two-month
low of $1,936.50 on Tuesday on fears a slowing U.S. economy
could weaken demand from car makers.
Platinum was well below a record high of $2,290 hit in
March on supply fears in main producer South Africa. Arbitrage
buying from speculators in Tokyo futures pushed up cash prices
but platinum struggled to sustain gains.
"After platinum fell below the $1,950 region, I think it
could move lower, from a technical perspective. Gold and silver
are definitely much better off," said a dealer in Singapore,
who pegged support at $1,920 for platinum.
The most active platinum contract for June 2009 delivery
<0#JPL:> on the Tokyo Commodity Exchange fell as low as 6,635
yen per gram, its lowest level since early June.
Spot palladium <XPD=> rose to $439.00/447.00 an ounce from
$437.50/445.50 an ounce late in New York. Silver <XAG=> edged
down to $17.79/17.84 an ounce from $17.82/17.88 late in New
York.
Gold futures for August delivery <GCQ8> on the COMEX
division of the New York Mercantile Exchange fell $0.5 an ounce
to $922.8.
Precious metals prices at 0715 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 921.50 2.00 +0.22 10.66
Spot Silver 17.81 0.05 +0.28 20.58
Spot Platinum 1945.00 4.00 +0.21 27.96
Spot Palladium 439.00 2.50 +0.57 19.29
TOCOM Gold 3212.00 -9.00 -0.28 4.97
37756
TOCOM Platinum 6669.00 -101.00 -1.49 24.91
33074
TOCOM Silver 620.60 -0.10 -0.02 14.71
699
TOCOM Palladium 1554.00 -33.00 -2.08 15.03
1491
Euro/Dollar 1.5700
Dollar/Yen 107.33
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Ben Tan)
