AF: Platinum group at multi-month highs, gold steady
By Chikako Mogi
TOKYO (Reuters) - Platinum group metals (PGM) rose to their highest levels in about two years on Thursday, reversing earlier declines as investor buying emerged on expectations that healthy auto sales underline bullish fundamentals.
Gold held steady as investors were wary of fallout from fraud charges against Goldman Sachs Group Inc, a leading commodities player, and concerns over Greece's debt problems.
The market is awaiting an annual industry report for PGMs, mostly consumed by the auto industry and the jewellery sector, by respected metals consultant GFMS Ltd due later in the day.
"We don't see a shortage of supply right now. But the outlook of PGMs' fundamentals are bullish this year and that view has been drawing investment money into PGMs," said a manager at a Japanese trading firm.
"Such money flows would not halt so easily," the manager said, adding that Japanese investors are among current buyers.
But Thursday's weakness in global stock markets was casting shadow over the glitter of PGMs, and price gains were somewhat limited by profit-taking, analysts said.
Spot palladium rose 0.4 percent to $565.50 an ounce after rising as high as $569, its highest since March 2008.
Spot platinum was up 0.9 percent at $1,747 an ounce after rising as high as $1,750.50, its highest since July 2008.
Spot gold was steady at $1,147.15 an ounce as of 0620 GMT, compared to late New York levels of $1,145.30.
U.S. gold futures for June delivery were down 0.1 percent at $1,148 per ounce compared to $1,148.80 an ounce on the COMEX division of the NYMEX.
For a technical analysis of the spot gold price click
Asian stocks fell on Thursday as several major U.S. firms issued disappointing profit outlooks, casting doubt on the strength of the global recovery, and as investors grew impatient for action on Greece's debt crisis, which weighed on the euro.
The pound, helped by upbeat data the previous day, hit a two-month peak against the euro, which at $1.3380 was also in a bearish tone, slipping towards March's 10-month low against the dollar at $1.3267.
Kazuhiko Saito, chief analyst at Tokyo's Fujitomi Co, said he would be closely watching a speech by President Barack Obama later on Thursday for comments on U.S. regulations.
White House spokesman Robert Gibbs said on Wednesday that Obama will mention derivatives in his speech, though that would not be the focus of his remarks.
A German state bank said it had severed business ties with Goldman Sachs, citing U.S. regulators' allegation that the dominant Wall Street bank committed fraud, while France eyed an investigation of its own.
Investment flows have paused, with holdings at the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, staying at a record 1,141.041 tonnes as of April 21, unchanged since first hitting this level on April 9.
