TOKYO, Oct 16 (Reuters) Gold fell from a 28-year high on Tuesday on selling after rallies over the last two weeks, but sentiment stayed strong due to strong energy prices and tensions in the Middle East.
-- Precious metals futures on the Tokyo Commodity Exchange fell and undermined cash gold.
Benchmark TOCOM gold futures <0JAU:> were down about 0.4 percent and key TOCOM platinum <0JPL:> was down 1 percent.
-- By 0113 GMT, cash gold
-- Yet gold was supported by rising tension between Turkey and Iraq, with Turkey's parliament expected to debate a request for authorisation for an incursion into northern Iraq to deal with separatist Kurdish militants.
-- Investors could unload some of their large buy positions in gold, but strong bargain-hunting demand from end-users in Asia and the Middle East could emerge on price dips.
-- Strong energy prices encouraged buying as gold is usually seen as a hedge against inflation. The precious metal often rises with geopolitical tensions as it tends to act as a safe haven in times of crisis.
-- U.S. crude futures climbed further on Tuesday, heading towards records over $86 a barrel as concerns over winter supplies were exacerbated by fresh tensions in the Middle East.
-- NYMEX crude for November delivery
-- COMEX gold futures were fell in Asia, with the most active December contract
Precious metals prices at 0113 GMT Metal Last Change Pct chg YTD pct chg Turnover Spot Gold 754.60 -4.30 -0.57 18.70 Spot Silver 13.70 -0.07 -0.51 6.61 Spot Platinum 1411.00 -10.00 -0.70 24.65 Spot Palladium 369.00 -9.00 -2.38 11.14 TOCOM Gold 2868.00 -14.00 -0.49 17.30 43146 TOCOM Platinum 5221.00 -56.00 -1.06 22.73 16268 TOCOM Silver 520.30 -9.20 -1.74 5.47 1154 TOCOM Palladium 1412.00 -39.00 -2.69 12.51 351 Euro/Dollar 1.4195 Dollar/Yen 117.20 TOCOM prices in yen per gram, except for silver which is in yen per 10 grams, spot prices in $ per ounce.
REUTERS CS BST0708