Gold dips on oil, palladium near 2-month high

Gold dips on oil, palladium near 2-month high
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First Published: Wed, Jun 18 2008. 11 42 AM IST
Updated: Wed, Jun 18 2008. 11 42 AM IST
Lewa Pardomuan / Reuters
Singapore: Gold slipped as oil extended losses on expectations that Saudi Arabia will soon boost output.
Palladium hovered near its highest level in two months on speculative buying, catching up with recent gains in other precious metals, while Tokyo platinum futures jumped to their highest level in three weeks.
Gold fell to $882.85/883.85 an ounce from $884.20/885.40 late in New York on 17 June, when the metal reversed early losses and firmed on a weaker dollar.
Gold rallied to its highest level in a week at $894.70 on 16 June due to a falling dollar, but was still well below a record high of $1,030.80 hit in mid-March.
“The market has lost direction but still focuses on oil prices and the performance of euro,” said Louis Lok, a dealer at Bank of China in Hong Kong.
“Trendwise, there’s a downside performance. Every time the market breaks $900, it will retrace quickly,” said Lok, who expected gold to trade in a tight range of $880 to $888.
Gold futures for August delivery on the COMEX division of the New York Mercantile Exchange fell $1.1 an ounce to $885.9.
The dollar steadied against the yen after falling the previous day as US housing plunged to a 17-year low, casting more doubt over how much the Federal Reserve might boost interest rates in coming months. Oil fell 61 cents to $133.40 a barrel. United Nations chief Ban Ki-moon said over the weekend thatSaudi Arabia was set to raise its oil output to 9.7 million barrels per day in July, up 550,000 bpd from May.
Spot platinum rose to $2,075.00/2,095.00 an ounce from $2,052.00/2,072.00 late in New York.
Spot palladium rose to $459.50/467.50 an ounce from $456.50/464.50. It hit a high of $464 an ounce on 16 June, its strongest level since mid-April.
“Since there’s no severe sell down in gold and no large gains in the dollar, platinum and palladium are likely to maintain their steady uptrend,” said Adrian Koh, analyst with Phillip Futures in Singapore.
“I see that palladium is approaching technical resistance around the $466 region. So perhaps $466 may provide a bit of a resistance or maybe some investors may take some profits after recent gains,” he said.
The most active Tokyo platinum contract for April 2009 delivery on the Tokyo Commodity Exchange ended the morning session 62 yen per gram higher at 7,088 yen. The contract hit a high of 7,096 yen -- its highest level since May 27.
Silver edged up to $17.09/17.16 an ounce from $17.05/17.13 late in New York.
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First Published: Wed, Jun 18 2008. 11 42 AM IST