(Updates prices)
By Lewa Pardomuan
SINGAPORE, Feb 28 (Reuters) - Gold firmed on Thursday,
hovering within sight of a record high hit the previous day,
while speculators sold platinum as they waited for new
developments in South Africa's supply problems.
Gold <XAU=> rose to $958.10/958.90 an ounce from
$957.50/958.30 late in New York. Gold rallied to an all-time
high of $964.70 an ounce on Wednesday as the dollar tumbled
against other currencies on possible U.S. interest rate cuts.
Gold has gained around 15 percent in 2008 on investor
buying driven by record high crude oil <CLc1> and the prospect
of more interest rate cuts, which raised the metal's appeal as
an alternative investment.
The upside target was pegged by dealers at $1,000 a an
ounce.
"In times of sharp rises in prices, it's a must to remember
there are plenty of investors and traders waiting to re-enter
on dips," said Pradeep Unni, analyst at Vision Commodities in
Dubai.
"The Federal Reserve is likely to slash rates further on
March 18, propelling gold further north. Multiply closing above
$950 would mean sustained gains in coming days."
The dollar held near record lows against the euro as a
sharp drop in durable goods orders and home sales fueled
recession concerns while Fed Chairman Ben Bernanke signalled a
readiness to cut interest rates again. []
"It's clear that investor interest in commodities as a
whole remains very strong with particular interest from the
pension funds who look for return in commodities when many
other markets are either too volatile or are falling," said
Investec Australia.
In other precious metals, silver held near a 27-year high,
palladium fell below Wednesday's 6-1/2-year high, while selling
in Japanese futures put pressure on cash platinum.
Platinum <XPT=> dipped to $2,120/2,127 from $2,130/2,140 an
ounce late in New York. It rallied to record of $2,192 on Feb.
22 in another round of speculative buying as persistent power
supply problems disrupted mining in South Africa, the world's
main producer.
"Recently, we haven't heard any fresh news from South
Africa. That's why speculators decided to take profits," said a
dealer in Tokyo.
"The Tokyo stock market is also falling sharply, which
triggers selling in other TOCOM contracts. I guess speculators
want to get some cash," he said.
In January, the world's biggest platinum and major gold
mines were forced to halt output for five days as South African
power utility Eskom restricted mining firms to 90 percent of
their normal consumption, leading metal producers to forecast
declines in output.
The most active February 2009 contract <0#JPL:> on the
Tokyo Commodity Exchange ended the morning session 166 yen per
gram lower at 7,091 yen, with a firmer yen against the dollar
also spurring liquidation.
Silver <XAG=> edged up $19.24/19.29 an ounce from
$19.22/19.27 an ounce, having reached a 27-year peak of $19.45
on Wednesday. Palladium <XPD=> fell to $547/552 an ounce from
$550/552 late in New York on Wednesday.
Precious metals prices at 0212 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 958.10 1.10 +0.11 15.06
Spot Silver 19.24 0.02 +0.10 30.26
Spot Platinum 2120.00 -10.00 -0.47 39.47
Spot Palladium 547.00 -3.00 -0.55 48.64
TOCOM Gold 3303.00 -16.00 -0.48 7.94
34977
TOCOM Platinum 7091.00 -166.00 -2.29 32.82
15291
TOCOM Silver 664.20 -4.60 -0.69 22.77
848
TOCOM Palladium 1955.00 -15.00 -0.76 44.71
13104
Euro/Dollar 1.5099
Dollar/Yen 106.34
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Reporting by Lewa Pardomuan; Editing by Michael Urquhart)
