(Updates prices, adds closing in Tokyo)
By Lewa Pardomuan
SINGAPORE, June 4 (Reuters) - Gold dipped on Wednesday as
the dollar held gains against other currencies and oil dropped
ahead of U.S. government data, reducing the metal's appeal as
an alternative investment and as a hedge against inflation.
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 before losing steam with
selling in Tokyo futures adding to the downward pressure.
Spot gold <XAU=> dropped to $879.65/880.65 an ounce from
$882.90/884.10 an ounce late in New York on Tuesday, when it
fell 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. []
Crude oil <CLc1> fell more than $1 to around $123 a barrel
on Wednesday ahead of U.S. government oil data due out later in
the day, which is forecast to show an increase in crude oil
inventories in the United States.
"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 $2.3 an ounce to $883.2
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=> was at $1,992.00/2,012.00 an ounce, hardly
changed 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 nearly 1 percent to end at
6,611 yen per gram, down 64 yen from Tuesday's close.
"For platinum, nearby support should be around
$1,940-$1,950, resistance around $2,070," said Koh of Philip
Futures.
Palladium <XPD=> fell to $428/436 an ounce from $429/437
late in New York.
Silver <XAG=> eased to $16.66/16.71 an ounce from
$16.77/16.84 late in New York.
Precious metals prices at 0841 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 878.80 -1.60 -0.18 5.54
Spot Silver 16.66 -0.09 -0.54 12.80
Spot Platinum 1992.00 -3.00 -0.15 31.05
Spot Palladium 428.00 -1.00 -0.23 16.30
TOCOM Gold 2991.00 -32.00 -1.06 -2.25
37465
TOCOM Platinum 6611.00 -64.00 -0.96 23.82
25503
TOCOM Silver 569.50 -4.60 -0.80 5.27
540
TOCOM Palladium 1483.00 -12.00 -0.80 9.77
518
Euro/Dollar 1.5467
Dollar/Yen 104.80
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)
