RTRS: Gold down on oil and dollar; platinum at 3-year low
By Lewa Pardomuan
SINGAPORE, Oct 6 (Reuters) - Gold fell more than $5 on
Monday, moving towards a two-week low hit last week, as crude
oil dropped on demand fears and the dollar jumped to a 13-month
high against the euro, dimming bullion's safe-haven appeal.
Platinum extended losses and tumbled to its lowest in
almost three years on economic weakness and dismal car sales,
especially in the United States. Silver tracked gold lower,
while palladium firmed on bargain hunting.
Gold was trading at $829.40 an ounce, down $5.40
from New York's notional close on Friday, when it hit a
two-week low of $818.70 after the U.S. House of Representatives
voted to pass a $700 billion package to bailout the U.S.
financial system.
"I guess the most important factor is the U.S. presidential
election in November and what the next president is going to do
about the economy. We don't know yet," said a dealer in Hong
Kong.
"We saw a little bit of physical buying because the market
is below the recent high. That's why we don't fall that much
today," said the dealer, referring to demand from jewellers.
Gold hit a two-month high of $920 an ounce in late
September before gradually falling on a rebound in the U.S.
dollar. The metal was below a record high of $1,030.80 struck
in March.
Investors also booked profits, with holdings in the world's
largest gold-backed ETF, the SPDR Gold Trust GLD, showing a
drop to 739.95 tonnes as of Oct. 6 from 755.26 last week.
XAUEXT-NYS-TT.
"If currencies such as the euro and the pound continue to
move lower, and the dollar higher, then I guess we would see
more downside pressure on gold," said Adrian Koh, an analyst at
Phillip Futures in Singapore.
"Apparently, the $820 levels will be the near-term support
to look at. If we do move below those levels, we will probably
be heading back to the 800 levels very soon," said Koh,
referring to levels last seen in September.
Oil CLc1 fell 2 percent on fears that efforts aimed at
containing the spreading credit crisis would fail to stave off
a deeper decline in oil demand. [O/R]
The euro fell to a 2-1/2-year low against the yen as
investors shifted their focus to banking problems in Europe
after leaders of the region's four biggest economies decided
against a coordinated bank bailout.[USD/]
Platinum was trading at $925.00 an ounce, down $2.63
from New York's notional close, having hit a low of $920.00 an
ounce, its weakest since November 2005.
"I think the outlook for platinum remains weak and the
effect of the credit crisis is also going to weigh on platinum
more than gold," said Koh of Phillip Futures.
"I don't have any nearby supports, and I have to look all
the way back to the 2005 periods for indications. Probably
around the $920, then $900 levels," he said.
Platinum last hovered at $900 in September 2005.
Platinum prices have tumbled more than 50 percent since
hitting a lifetime high of $2,290 in March, when speculators
bought the metal on supply worries following a power crisis in
main producer South Africa.
New York gold futures GCZ8 added $0.9 an ounce to $834.1
an ounce on the COMEX division of the New York Mercantile
Exchange.
Precious metals prices at 0638 GMT
Metal Last Change Pct chg YTD pct chg
Turnover
Spot Gold 829.40 -5.40 -0.65 -0.40
Spot Silver 11.02 -0.07 -0.63 -25.39
Spot Platinum 925.00 -25.00 -2.63 -39.14
Spot Palladium 196.00 2.00 +1.03 -46.74
TOCOM Gold 2740.00 -98.00 -3.45 -10.46
43154
TOCOM Platinum 3058.00 -152.00 -4.74 -42.72
20441
TOCOM Silver 363.00 -16.10 -4.25 -32.90
864
TOCOM Palladium 664.00 -32.00 -4.60 -50.85
472
Euro/Dollar 1.3585
Dollar/Yen 103.32
TOCOM prices in yen per gram, except TOCOM silver which is
priced in yen per 10 grams. Spot prices in $ per ounce.
(Editing by Clarence Fernandez)