(Updates prices)
By Lewa Pardomuan
SINGAPORE, June 4 (Reuters) - Gold extended losses on
Wednesday as the U.S. dollar held gains against other
currencies, reducing the metal's appeal as an alternative
investment, but the fall was cushioned after oil steadied from
a more than $3 drop the previous day.
Gold has lost more than 14 percent in value since spiking
to an all time high of $1,030.80 an ounce in mid-March.
Platinum briefly touched $2,000 as selling subsided in Tokyo.
Spot gold <XAU=> was at $878.65/879.65 an ounce at 0540
GMT, down from $882.90/884.10 an ounce late in New York on
Tuesday, when it dropped almost 1 percent.
"It's still on a one-month gradual uptrend, so I am looking
at the $870-$875 support as a key indicator for gold's
direction. A movement below this could see prices heading back
to the $845-$850 region," said Adrian Koh, analyst at Philip
Futures in Singapore.
"Upside, I will be looking at $900-$905 to provide some
resistance," he said.
The dollar hardly moved but held onto gains against the
euro and other major currencies after Federal Reserve Chairman
Ben Bernanke issued an explicit warning about the inflationary
threat from a weak U.S. currency. []
Oil <CLc1> steadied above $124 a barrel on Wednesday as
traders awaited U.S. data expected to show rising oil stocks.
[]
"I would say gold is still in a range of $850 to $900 for
the time being, and we are all waiting for Friday's U.S.
nonfarm payrolls data," said a dealer in Hong Kong.
"Jewellery makers are covering shorts but it's not great
because the market has not stabilised yet," he said.
The August gold contract <GCQ8> on the COMEX division of
the New York Mercantile Exchange fell $2.1 an ounce to $883.4
an ounce.
Platinum was volatile, with early selling dragging down the
price to as low as $1,980.50 an ounce before bargain hunters
emerged.
Platinum <XPT=> firmed to $1,998.00/2,008.00 ounce from
$1,992.50/2,012.50 late in New York, having earlier hit a high
of $2,000 an ounce.
The benchmark April 2009 platinum contract on the Tokyo
Commodity Exchange <0#JAU:> fell 48 yen per gram to 6,626 yen.
"For platinum, nearby support should be around
$1,940-$1,950, resistance around $2,070," said Koh of Philip
Futures.
Palladium <XPD=> was at $429/434 an ounce, barely changed
from $429/437 late in New York.
Silver <XAG=> eased to $16.72/16.79 an ounce from
$16.77/16.84 late in New York.
Precious metals prices at 0517 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 879.90 -0.50 -0.06 5.67
Spot Silver 16.72 -0.03 -0.18 13.20
Spot Platinum 1998.00 3.00 +0.15 31.45
Spot Palladium 429.00 0.00 +0.00 16.58
TOCOM Gold 3003.00 -20.00 -0.66 -1.86
15121
TOCOM Platinum 6627.00 -48.00 -0.72 24.12
13971
TOCOM Silver 572.70 -1.40 -0.24 5.86
268
TOCOM Palladium 1487.00 -8.00 -0.54 10.07
310
Euro/Dollar 1.5451
Dollar/Yen 105.15
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Additional reporting by Miho Yoshikawa in Tokyo; Editing by
Michael Urquhart)
