(Updates prices)
By Lewa Pardomuan
SINGAPORE, Jan 15 (Reuters) - Gold rose on Tuesday and held
near an historic high hit the previous day, reflecting
investors' interest in the metal as the dollar dropped on
expectations of half-percentage-point cut in U.S. rates.
Platinum hovered near record highs, silver kept within
sight of a 27-year peak hit on Monday, while palladium stayed
near a two-month high struck the previous day.
"Given the jitters from the credit crunch around the world,
demand for safe-haven assets like gold is going to remain
relatively high," said Craig James, chief economist at
Commonwealth Securities in Sydney.
Spot gold <XAU=> rose to $909.10/909.90 an ounce from
$902.10/902.80 an ounce late in New York. Bullion touched an
all-time high of $914 an ounce on Monday on investor buying
driven by the dollar's slide and financial market turmoil.
"But certainly in the current environment, prices of $920
and $930 an ounce can't be ruled out," said James.
"The U.S. dollar is probably going to remain weak on
expectations of significant rate cuts in the U.S. to support
growth."
Gold's appeal as an alternative investment is increasing as
the greenback comes under pressure on concerns that some of the
largest U.S. banks will report weaker earnings this week --
raising expectations for further rate cuts.
Record high oil <CLc1> also ignited safe-haven buying
against inflation.
Citigroup is the first in line among banks to report its
fourth-quarter earnings, due on Tuesday. Markets will be
watching for indications of how much the credit crisis is
damaging the banks' bottom lines and increasing the risk of a
recession. []
Citigroup could write down as much as $24 billion and cut
up to 24,000 jobs, CNBC reported on Monday.
The euro was steady at $1.4865 <EUR=> -- off Monday's
seven-week peak of $1.4915 and a record high of $1.4969 hit in
November.
COMEX gold futures also hovered near a record high hit the
previous day. The most active February contract <GCG8> gained
$7.3 an ounce to $910.7 an ounce.
"All factors pointing to a more positive sentiment in the
market remains," Albert Cheng, managing director, Far East,
World Gold Council, told Reuters via e-mail.
"The price is being driven by a number of long- and and
short-term factors, including a weak dollar and instability in
the global financial markets, which play to gold's proven
strengths as an inflation hedge, a dollar hedge and an
insurance against extreme movements."
The key gold futures contract for December 2008 delivery
<0#JAU:> on the Tokyo Commodity Exchange (TOCOM) ended the
morning session up 15 yen per gram at 3,183 yen.
Platinum <XPT=> rose to $1,579/1,584 an ounce from
$1,572/1,577 an ounce late in New York on Monday, when it
spiked to a record high of $1,590 an ounce to track gold's
rally.
Silver <XAG=> rose to $16.49/16.54 an ounce from
$16.31/16.36 late in New York, but was off Monday's 27-year
high of $16.58 an ounce.
Palladium <XPD=> fell to $378/382 an ounce from $379/384,
but remained near Monday's two-month high of $380 an ounce.
Precious metals prices at 0203 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 909.00 5.50 +0.61 9.16
Spot Silver 16.49 0.14 +0.86 11.65
Spot Platinum 1579.00 4.00 +0.25 3.88
Spot Palladium 379.00 3.00 +0.80 2.99
TOCOM Gold 3183.00 15.00 +0.47 4.02
46361
TOCOM Platinum 5405.00 22.00 +0.41 1.24
17426
TOCOM Silver 577.00 2.80 +0.49 6.65
770
TOCOM Palladium 1347.00 7.00 +0.52 -0.30
196
Euro/Dollar 1.4875
Dollar/Yen 107.89
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)
