* Platinum, palladium hit multi-month highs
* Pre-holiday trade slows, ranges tighten
* Absa plans South African ETN linked to platinum
* Julius Baer gold ETF hits record
(Recasts, updates prices, market activity; adds second
byline, dateline, previously LONDON)
By Carole Vaporean and Jan Harvey
NEW YORK/LONDON, April 9 (Reuters) - Gold finished lower on
Thursday as U.S and European share prices rose, undermining a
penchant for safe haven investments, traders said.
Trading was muted and ranges tight ahead of the Easter
break. Commodity and financial markets will close for the Good
Friday holiday and reopen in New York on Monday. In London,
they will remain closed on Monday for the Easter holiday.
Platinum and palladium both rose to multi-month highs, as
investment demand was boosted by news that new exchange-traded
products linked to platinum group metals are being planned.
Spot gold <XAU=> pared losses but remained lower at
$880.05/882.05 an ounce at 3:11 a.m. EDT (1911 GMT) from
$880.85/882.05 an ounce in late Wednesday trade. Gold for June
delivery <GCM9> eased $2.60 to settle at $883.30 an ounce on
the COMEX division of the New York Mercantile Exchange.
"The market was driven by fear, so if there is not so much
fear in the market investors will not be looking for as much
gold," said Commerzbank analyst Eugen Weinberg.
The yellow metal eased when equities in Europe and the
United States jumped after Wells Fargo <WFC.N> gave upbeat
guidance, saying it would report a record quarterly profit. The
news provided hope for the struggling financial sector. []
Elsewhere platinum <XPT=> rose to a 6-1/2 month high of
$1,210 an ounce, and later remained firm at $1,195.0/1,205.0 an
ounce from $1,172.50/1,182.50 in Wednesday trade.
Platinum and palladium are benefiting from strong
investment flows as buyers expect demand for the metal used in
autocatalysts will rise in the second half of the year.
Chinese car sales rose more than 10 percent in March,
official data showed, fuelling hopes the downturn in the global
automotive industry could be bottoming out. []
Investors are buying platinum for the same reasons they are
attracted to gold, Weinberg added. "Platinum is a hard asset,
and given the possible inflation risks in the future, people
are interested in diversifying into assets like that."
South Africa's Absa Capital <ASAJ.J> said on Thursday it
plans to launch an exchange-traded note in the second half of
2009 to give investors exposure to the spot price of platinum.
[]
TRUSTS
ETF Securities said holdings of its platinum-backed
exchange-traded commodities in the UK and Australia rose 16,869
ounces in the week to Wednesday to stand at 326,799 ounces.
The platinum group metals were boosted earlier this week by
news the company has filed with the Securities & Exchange
Commission to register platinum and palladium trusts in the
United States. []
"It is clear that many market participants have positioned
themselves ahead of a potential platinum ETF product," said one
London-based analyst.
"Platinum (and palladium) is currently on the receiving end
of the most enthusiastic investor reception that it has seen
for many months, and participants are happy to operate in
defiance of the recent pressure that gold has succumbed to."
Holdings of the world's largest gold-backed ETF, New York's
SPDR Gold Trust <GLD>, were unchanged as of Wednesday for the
fourth straight session, raising fears investor demand for the
precious metal may be stagnating. []
However, in Europe Julius Baer <BAER.VX> said holdings of
the gold ETF it operates rose 72,000 ounces or 7 percent on
Wednesday to a record 1,076,575 ounces. []
On the supply side, South Africa, the world's number three
gold producer, said its output of the precious metal was up 2.7
percent in February from a year before. []
Among other precious metals, spot silver <XAG=> pulled off
session peaks to $12.29/12.39 an ounce by 3:06 p.m. EDT (1906
GMT), still up from $12.25/12.31 an ounce late Wednesday.
(Reporting by Carole Vaporean and Jan Harvey; Editing by
David Gregorio)
