* Platinum up 3 pct before trimming gains * Gold steady, watching currency markets * Dollar inches up, oil at 22-month low (Recasts, updates prices and comments, pvs SINGAPORE) By Humeyra Pamuk LONDON, Nov 19 (Reuters) - Platinum held firm after rising as much as 3 percent on Wednesday after an industry report predicted demand could still rise and a mine closure triggered short covering, while gold was steady. Precious metals traded rangebound, keeping an eye on the currency markets, as the dollar inched up against a basket of currencies while falling oil prices capped possible gains of bullion. Platinum was trading at $829.00 an ounce by 1055 GMT after hitting a session high of $850 an ounce earlier and compared with $824.50 an ounce in New York late on Tuesday, when it gained around 2 percent. "Platinum has risen on the combination of short-covering and people taking the Johnson Matthey report as not perhaps being as bearish as they might have seen," Tom Kendall, precious metals strategist at Mitsubishi Corp, said. Precious metals refiner Johnson Matthey (JMAT.L: Quote, Profile, Research, Stock Buzz) said global demand for platinum catalytic converters would climb 2 percent in 2008 on higher consumption in Europe and emerging economies, despite a sharp decline in North America. [ID:nN17507840] Prices were also supported by news that Lonmin (LMI.L: Quote, Profile, Research, Stock Buzz), the world's third-biggest platinum producer, would close its high-cost mines and that it was cutting costs to survive a market downturn. [ID:nLI461697] "It is not a big headline grabbing number of ounces but people look at it and see that there will probably further action to come from South African producers in terms of moderating some of their less economic production," Kendall said. But analysts do not expect a major recovery in the platinum price as the demand from the auto sector, which has been severely affected by the global downturn, remains key. More than 60 percent of global platinum use goes to autocatalysts to clean exhaust fumes. Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo, said Johnson Matthey's price range of $700 to $1,400 an ounce for platinum was reasonable but demand remained in doubt. "There's no actual demand at this moment. Jewellery and auto companies are not buying." Despite the gains, fears about the future of the financially ailing General Motors (GM.N: Quote, Profile, Research, Stock Buzz) weighed on the market and could trigger another bout of selling, he said. "Tomorrow or the day after, the situation will gradually change," Sonoda said. Platinum roared to a record $2,290 in March as a power shortage in main producer South Africa disrupted mining. But prices have tumbled since then on deteriorating car sales, and platinum also tracked declines in gold as fears about the global economic slowdown deepened. GOLD RANGEBOUND Gold, whose movements often dictate platinum, held near New York levels. Spot gold was trading at $736.05 an ounce versus $736.35 an ounce in New York late on Tuesday. "For now gold is likely to remain in the current $720-765 range," analyst James Moore at Thebulliondesk.com said, adding bullion was looking at currency markets for direction. The dollar was slightly higher against a basket of major currencies while oil prices fell to a 22-month low. European shares fell as prospects of a deep global recession continued to rattle investors. But gold moves were rangebound. "A lot of the bad news and policy decisions have now been factored in," Kendall said, adding the market was waiting for a fresh news for direction. New York gold futures GCZ8 rose $3.6 an ounce to $736.3. Silver was at $9.45/9.53 from $9.60 and palladium at $211.50/219.50 from $213. (Editing by Sue Thomas)

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