Gold, platinum off record highs, eyes on Fed

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold and platinum slipped on Wednesday as investors booked profits ahead of an interest rate decision by the U.S. Federal Reserve, which may determine the direction of the precious metals market.

Spot gold fell to $922.70/923.60 an ounce from $928.60/929.30 an ounce in New York on Tuesday, when the metal rallied to another record high of $933.10 on expectations of more rate cuts in the U.S. and fears about South African output.

Analysts said sentiment was bullish, with gold already rising 11 percent in 2008, after a jump of 32 percent last year, as investors bought the metal on uncertainty in the dollar's outlook, record high crude oil and turmoil in financial markets.

"You couldn't rule out the possibility of gold moving higher in the next few days. Possibly to $930 or above that level," said David Moore, a commodity analyst at the Commonwealth Bank of

Australia.

"I would hesitate to say though that we've seen a consolidation in the gold price. In the current environment, I think it's likely to remain volatile."

Platinum dropped to $1,690/1,670 an ounce from $1,705/1,710 an ounce late in New York. The metal spiked to an historic high of $1,735 an ounce on Tuesday before profit taking kicked in.

Dealers said supply concerns persisted even though South