* Gold near 2-week low on surging dollar
* Platinum strikes lowest in nearly 3 years on demand
fears
(Updates prices, adds optimism on U.S. bailout)
By Lewa Pardomuan
SINGAPORE, Oct 3 (Reuters) - Gold bounced on Friday but
held within sight of a two-week low as the U.S. dollar hovered
near a one-year peak against other currencies, while platinum
was at its weakest in almost three years on demand fears.
Platinum, mainly used in autocatalysts to clean exhaust
pipes, has lost more than 50 percent in value since spiking to
a lifetime high at $2,290 an ounce in March, on profit taking
and recently on poor car sales and a slowing U.S. economy.
Platinum was also hit by falling gold prices after the
dollar gained on hopes the U.S. Congress would pass a $700
billion bailout plan. In theory, a rising dollar reduces gold's
appeal as an alternative investment to currencies, stocks and
bonds.
Gold <XAU=> was trading at $841.50 an ounce, up $6.50 from
New York's notional close on Thursday, when it hit an intraday
low of $829.20 an ounce.
"We will have to see how the dollar reacts to the (bailout)
bill and the jobs data. I am still slightly positive on the
dollar," said Adrian Koh, an analyst at Phillip Futures in
Singapore.
"With the European Central Bank signaling a possible rate
cut, seems like the euro is going to be a bit pressured. I am
looking at $820 for near-term support, then $800. Upside
resistance will come in around $845," said Koh, referring to
levels seen in August.
Gold hit an intraday low of $830.70 on Friday and was well
below a record of $1,030.80 struck in March.
U.S. House Democratic leaders expressed optimism on
Thursday a revised $700 billion financial industry rescue bill
passed by the Senate will clear the House of
Representatives.[]
The dollar index, which gauges performance against a basket
of six major currencies, barely moved at 80.370 on Friday
<.DXY> after reaching a one-year peak of 80.794 the previous
day. []
Investors also await the release of an employment report by
the Labor Department on Friday after U.S. weekly initial
jobless claims came in higher than expected, underscoring the
deterioration in the labour market.
Platinum <XPT=> was trading at $955.00 an ounce, down $5.00
from New York's notional close, having hit an intraday low of
$946.50 an ounce, its lowest level since December 2005, as poor
car sales weighed on sentiment.
"Platinum below $1,000 is incredible. Jewellery demand has
decreased so much, and so much scrap has been sold back to
fabricators," said Yukuji Sonoda, precious metals analyst at
Daiichi Commodities in Tokyo.
"It's very possible for platinum to fall to $900," said
Sonoda, referring to a level last seen in August 2005.
More than 60 percent of global use in platinum goes to
autocatalysts. Platinum is also used in jewellery.
Major automakers reported plunging U.S. sales for
September, led by a 34 percent slide at Ford Motor Co, as the
escalating credit crisis hit the industry and raised new doubts
about when the world's auto market would stabilise.
[]
New York gold futures <GCZ8> rose $1.9 to $846.2 an ounce.
Precious metals prices at 0341 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 841.50 6.50 +0.78 1.06
Spot Silver 11.04 0.25 +2.32 -25.25
Spot Platinum 955.00 -5.00 -0.52 -37.17
Spot Palladium 198.00 6.50 +3.39 -46.20
TOCOM Gold 2841.00 -89.00 -3.04 -7.16
23011
TOCOM Platinum 3232.00 -85.00 -2.56 -39.46
12288
TOCOM Silver 375.70 -38.20 -9.23 -30.55
300
TOCOM Palladium 685.00 -17.00 -2.42 -49.30
390
Euro/Dollar 1.3830
Dollar/Yen 105.10
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)
