Gold above 2-week low as oil bounces; platinum near lows

Enlarge Photo Gold earrings are seen on display at a jewellery shop in Singapore in this March...

Fri, Jul 25 06:31 AM

SINGAPORE (Reuters) - Gold gained on Friday as a rebound in oil prices restored its appeal as a hedge against inflation, while platinum held near its lowest level in six months on worries of falling demand.

-- Gold rose to $927.40/928.40 an ounce from $923.00/924.00 late in New York on Thursday when it struck a two-week low of $915.80 before rebounding on firmer oil

-- Spot platinum fell as low as $1,702.50 an ounce, hovering near Thursday's six-month low of $1,701.50, before bouncing to $1,729.50/1,749.50 an ounce, up from $1,709.50/1,729.50 late in New York

-- Gold futures for August delivery on the COMEX division of the New York Mercantile Exchange added $5.8 to $928.10 an ounce.

-- Oil prices rebounded from a seven-week low on Thursday in what traders said was technical trading and a short covering bounce after recent declines left the market oversold.

-- Average gold prices will rise more than 30 percent this year and hold onto gains in 2009, as safe-haven buying fuelled by ongoing financial risks will boost investor interest, a Reuters poll showed on Thursday.

-- Platinum is expected to rise more than 50 percent this year than in 2007 as supply fears from major producer South Africa boost the market, a Reuters poll showed.

-- The most active Tokyo gold contract for June 2009 delivery on the Tokyo Commodity Exchange fell 5 yen per gram to 3,229 yen.

-- Spot palladium rose to $386.00/391.00 an ounce from $382.00/390.00 late in New York.

-- Silver edged up to $17.45/17.51 an ounce from $17.34/17.40 late in New York.

Precious metals prices at 0027 GMT

Metal Last Change Pct chg YTD pct chg Turnover

Spot Gold 927.90 1.40 +0.15 11.43

Spot Silver 17.46 0.06 +0.34 18.21

Spot Platinum 1732.00 29.50 +1.73 13.95

Spot Palladium 385.00 0.50 +0.13 4.62

TOCOM Gold 3231.00 -3.00 -0.09 5.59 5364

TOCOM Platinum 5961.00 22.00 +0.37 11.65 3485

TOCOM Silver 610.00 -0.80 -0.13 12.75 187

TOCOM Palladium 1375.00 11.00 +0.81 1.78 221

Euro/Dollar 1.5673

Dollar/Yen 107.25

TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce.

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