(Updates prices) 
    SINGAPORE, July 22 (Reuters) - Gold extended gains on Tuesday 
as uncertainties in the U.S. financial system lingered, while 
platinum tumbled to its lowest level in more than two months on 
demand fears. 
    The most active gold contract on the Tokyo Commodity Exchange 
held near its highest level in 25 years as Japanese investors 
returned to the market after a holiday, and a firm cash market 
helped spur buying. 
    Gold <XAU=> rose to $966.95/967.95 an ounce from 
$961.75/963.15 an ounce late in New York on Monday -- not far 
from a four-month high of $987.75 hit last week. 
    "There's a very bullish momentum here. Gold is well supported 
above the $955 level," said Willian Kwan, bullion director at 
Gold Capital Management in Singapore. 
    "I believe there's an increase in short positions by the 
small specs. They might be washed out when the price of gold hits 
$972," he said. 
    The most active Tokyo gold contract for June 2009 delivery 
<0#JPL:> on TOCOM ended the morning session 28 yen per gram 
higher at 3,341 yen. It hit a one-week high of 3,345 yen -- just 
below a 25-year high of 3,346 yen struck last week. 
    The euro was barely changed at $1.5922 <EUR=>, having gained 
in New York with the market focusing on a rescue plan for 
troubled U.S. mortgage finance giants Fannie Mae <FNM.N> and 
Freddie Mac <FRE.N>. [USD/] 
    Oil <CLc1> eased 73 cents to $130.31 a barrel as Tropical 
Storm Dolly, the first big storm threat of2008 for offshore oil 
producers in the Gulf of Mexico, lookedunlikely to affect U.S 
production. [O/R] 
    Spot platinum <XPT=> fell to $1,834.50/1,854.50 an ounce from 
$1,837/1,857 an ounce in New York. It hit a low of $1,825.50, its 
lowest since May 2, on fears of falling demand for autocatalysts 
due to a slowing U.S. economy. 
    "There's not much large fund buying in platinum at the 
moment. That's why it's not moving, it's coming off," said Kwan 
of Gold Capital Management. 
    "Take a look at other indicators, maybe RSI. It's oversold. I 
think things should pick up from here," he said. 
  Platinum's 14-day relative strength indicator (RSI) stood at 
20.45 on Monday, down from 50.91 last week. The market views 
an RSI of 30 or less as oversold and 70 or more as overbought. 
    Gold futures for August delivery <GCQ8> on the COMEX division 
of the New York Mercantile Exchange added $4.0 to $967.70 an 
ounce. 
    Spot palladium <XPD=> rose to $414.00/422.00 an ounce from 
$410.50/418.50 late in New York. Silver <XAG=> edged up to 
$18.44/18.52 an ounce from $18.35/18.43 late in New York. 
 Precious metals prices at 0217 GMT 
 Metal             Last    Change  Pct chg  YTD pct chg  Turnover 
 Spot Gold         967.10    1.80   +0.19     16.14 
 Spot Silver        18.46    0.07   +0.38     24.98 
 Spot Platinum    1834.50   -2.50   -0.14     20.69 
 Spot Palladium    414.00    2.50   +0.61     12.50 
 TOCOM Gold       3341.00   28.00   +0.85      9.18        16472 
 TOCOM Platinum   6206.00  -95.00   -1.51     16.24        12031 
 TOCOM Silver      638.30   -2.90   -0.45     17.99          446 
 TOCOM Palladium  1453.00  -22.00   -1.49      7.55          336 
 Euro/Dollar       1.5925 
 Dollar/Yen        106.37 
 TOCOM prices in yen per gram, except TOCOM silver which is 
priced in yen per 10 grams. Spot prices in $ per ounce. 
 (Reporting by Lewa Pardomuan; Editing by Michael Urquhart) 
 (([email protected]; +65 6870 3834;  Reuters 
Messaging:[email protected])) 
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