Spot gold extend losses, TOCOM plunges by limit

TOKYO, May 11 (Reuters) Cash gold extended losses on Friday after plunging the previous day on heavy fund selling in response to a rally in the dollar and sales by central banks, while Japanese gold futures fell by more than 2 percent.

-- Spot gold was trading at $664.70/665.60 an ounce as of 0041 GMT, down from $667.00/667.50 late in New York on Thursday. It dropped as far as $664.00 the previous day -- the lowest since April 4.

-- The dollar rallied to one-month highs against the euro and 2-{ month peaks versus the yen on Thursday as investors trimmed bearish bets on the greenback after key central bank meetings this week.

-- A stronger greenback makes dollar-denominated assets like gold more expensive for investors holding other currencies.

-- Tokyo Commodity Exchange gold futures plunged in line with the cash price.

-- Key April 2008 TOCOM gold futures plunged by the daily 60-yen limit to 2,586 yen ($21.55) per gram on Friday due to sharp falls in cash gold after liquidation by investment funds the previous day.

-- Other precious metals were also under strong profit-taking pressure.

-- Platinum fell to $1,307/1,312 an ounce from $1,310/1,315 in New York.

-- Palladium fell to $357/362 an ounce from $358/361 -- Silver fell to $12.98/13.03 an ounce from $13.04/13.09 late in New York.

($1=119.98 yen) Reuters JK SBA VP0700