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 was trading at $754.50/755.30 an ounce, down from $758.20/759.00 late in New York on Monday, when it hit a 28-year high of $759.90.
-- 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 rose 12 cents to $86.25 a barrel in Globex electronic trading. It had settled $2.44 higher at $86.13 a barrel on Monday, after hitting an intraday record of $86.71 earlier.
-- COMEX gold futures were fell in Asia, with the most active December contract trading down $2.7 or 0.35 percent at $759.5 from the New York settlement on Monday.
-- Platinum sharply dropped to $1,413/1,418 an ounce ounce from $1,421/1,425 in New York. It hit a record-high of $1,428 on Monday.
-- Palladium fell to $370/375 an ounce from $378/382 in New York.
-- Silver fell to $13.70/13.75 an ounce from $13.77/13.82 late in New York.
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