Gold booms in Asia; Platinum Resists

Singapore - Gold and other precious metals rose in Asia Thursday, with confidence seemingly restored after last Friday's dip.

Platinum took over from palladium as precious metals leader, advancing 1% to its highest level since August 2008 before falling back at $1,750 trendline resistance.

Mitsui noted that China's imports of platinum came in at 11.75 tons in March, up 230% on year, while during the first three months of 2010, a total of 23.85 tons were imported, up 136% on the same period last year, with much of it to supply the jewelry sector as well as auto-catalysts.
"If the auto industry returns to the market in force this year, the fundamental picture for platinum looks very strong," said the bank.

Gold was also edging higher, although the market's positioning looks very long, said a Hong Kong-based trader.

"No one is short. The funds are in and they are talking it higher, and that means it could be a sell," he said.

He identified $1,150 as key resistance today, with a successful breach of this likely to attract more momentum buying.

Gold is also looking strong against the crosses, getting support from the ongoing Greece fiscal crisis, which has continued to attract safe haven buying to the yellow metal while hurting the euro.

At 0635 GMT, spot gold was at $1,146.50/oz, up 30 cents since the New York close, while in euro terms, it was at EUR856.27, up 63 cents.