(Updates prices, adds quotes)
By Lewa Pardomuan
LONDON, May 16 (Reuters) - Gold jumped nearly 2 percent on
Friday on record high oil prices and chart-based buying while
platinum rose by an even greater margin ahead of the release of
a supply and demand outlook.
Spot gold <XAU=> hit a high of $899.15 an ounce, its best
level since April 24, up from $881.55/882.75 late in New York on
Thursday.
But gold has to breach the key resistance of $900 to sustain
the uptrend after earlier attempts to approach the lifetime high
of $1,030.80 an ounce hit on March 17 were met by heavy profit
taking.
"I think we're likely to see more range-bound trading,
between the established $850 and $900 in the absence of a new
catalyst," said Suki Cooper, precious metals analyst at Barclays
Capital.
Spot platinum <XPT=> rose to $2,131.00/2,146 an ounce from
from $2,079/2,094 late in New York.
The metal rallied on speculation precious metals refiner
Johnson Matthey <JMAT.L> may release another bullish outlook in
its annual report on platinum group metals next week.
"I think the underlying fundamentals for platinum are very
strong," said Cooper.
"We're likely to see another large deficit in the market
this year, given the expectations for reduced supply on the back
of the power problems in South Africa."
"CRUCIAL NUMBER"
Platinum, used in jewellery and auto catalysts, powered to
record high of $,2,290 an ounce on March 4 after a power crisis
in main producer South Africa disrupted mining and sparked fear
of a supply deficit.
Oil <CLc1> climbed to a new record high above $127 on
Friday, driven up by a weaker dollar and a bullish market for
distillate fuels as China and Europe scramble for diesel amid
thin global supplies. []
"I guess $900 is a crucial number we need to clear first.
The bulls can tempt investors to take gold to $910 and $914
again but it may fall again," said a bullion dealer.
"Gains could be capped around $913 and $924."
The most active June gold futures contract <GCM8> on the
COMEX division of the New York Mercantile Exchange added $14.7 to
$884.7 an ounce.
"The fund may be a little bit on the buying side, but
jewellers are waiting for the downside," said Ronald Leung,
director of Lee Cheong Gold Dealers in Hong Kong.
"The only support comes from investor buying. If they are
not buying, the market will drop," said Leung who also expects
gold to trade within the familiar range of $850 to $900.
Gold hedging positions of mining companies fell 18 percent
to 22 million ounces in the first quarter of 2008, a report
sponsored by Fortis Bank said on Friday, forecasting a full-year
drop of 10-12 million ounces. []
Palladium <XPD=> rose to $440.50/448.50 an ounce from
$432/440 in late New York. Silver <XAG=> edged up to
$16.89/16.94 an ounce from $16.70/16.76 in New York.
(Editing by Christopher Johnson)
