(Updates lead, prices)
SINGAPORE, May 26 (Reuters) - Gold edged up towards $928 an
ounce on Monday, continuing last week's rally as oil prices
resumed their march upwards and the U.S. dollar steadied at
near a one-month low.
Spot gold <XAU=> stood at $926.80/928.20 an ounce by 0709
GMT, up 0.2 percent from $925.20/926.60 in New York late last
week, and looking to more gains after it rose nearly 3 percent
on the week when oil prices rose above $135 a barrel for the
first time on record.
"Oil demand has been far more resilient to higher prices
than expected and prices continue to go higher. Gold is seeing
a catch-up rally, pricing further expectation of rising oil,"
Mark Pervan senior commodities analyst at ANZ, said.
Spot gold rose as high as $935.30 last Thursday, its
highest level in a month on the day that oil prices rose above
$135.00.
"Gold could revisit the high $900s if oil maintains these
kinds of levels and the dollar weakens, but the natural limit
is $1,000 and we would struggle to get back through that
level," Pervan added.
Oil rose towards $133 a barrel on Monday, standing at
$132.80 a barrel, up 61 cents by 0716 GMT, as a supply outage
on the Statfjord oilfield in the North Sea over the weekend
added short-term concerns to longer-term worries that supply
will struggle to keep up with demand over the next few years.
[]
The weaker U.S. dollar also added to gold's appeal as an
alternative currency, with the greenback steadying at near
one-month lows against a basket of major currencies on Monday
on concerns that the record-high oil prices could further slow
the U.S. economy and add to inflation pressures. []
The dollar index was little changed on the day at 71.970
<.DXY>, down 0.01 percent, and within sight of one-month lows
of 71.823 struck last week.
Noncommercial investors in U.S. gold futures turned bullish
last week, hiking their long positions by around 20 percent in
the week to May 20, data from the U.S. Commodity Futures
Trading Commission showed on Friday.
Noncommercial investors, often referred to as speculators,
were net long on 182,119 lots of gold on the New York
Mercantile Exchange's COMEX metals division, up from 152,938
lots a week earlier. []
Gold futures for June delivery <GCM8> on the COMEX division
of the New York Mercantile Exchange were up $1.10 to $926.90 an
ounce.
Benchmark April gold <0#JAU:> on the Tokyo Commodity
Exchange was down 1 yen at $3,104 yen per gram.
Spot platinum <XPT=> rose to $2,177.50/2,197.50 an ounce
from $2,156.50/2,176.50 late in New York.
The most active Tokyo platinum futures contract <0#JPL:>
fell 21 yen per gram to 7,062 yen.
Silver <XAG=> was largely steady from last week at
$18.20/18.26 an ounce.
Spot palladium <XPD=> was stronger at $453/$458 an ounce.
(Reporting by Maryelle Demongeot and Nick Trevethan; Editing
by Clarence Fernandez)
