COMMODITIES-Oil extends gain;gold up on inflation worry

* Oil rises as IEA cuts supply forecasts

* Gold extends New York gains on rising oil prices

* Soybean at record high on concerns over reduced stocks

By Miyoung Kim

SEOUL, July 2 (Reuters) - Oil rose more than $1 a barrel on
Wednesday, moving closer to its record high above $143, on a
slower global supply growth outlook and expectations for a weak
U.S. dollar ahead of Thursday's European Central Bank meeting.

Gold XAU= also firmed up, extending overnight gains, as
rising oil prices stoked fears of inflation and dragged Asia
ex-Japan equities market down near March lows, boosting the
precious metal's safe-haven appeal.

Soybean renewed its all-time high for a third consecutive
session amid worries about a drop in soybean stocks in the
United States, the world's top soybean producer, to record
lows.

"The things that have driven it (gold) up seem to be
hanging around. Obviously oil has been forever there and
remains a concern to many worrying about the consequential
effects on inflation," said Darren Heathcote of Investec
Australia in Sydney.

Oil CLc1 rose $1.09 a barrel to $142.06 on Wednesday,
hovering around Monday's record high above $143 on tight supply
forecasts and tensions between Israel and Iran amid strong
demand in Asia and the Middle East putting a strain on the
global economy.

The International Energy Agency, the energy advisor to 27
industrialised nations, cut its global oil supply capacity
forecast by 2.7 million barrels per day to 95.33 million bpd by
2012, boosting oil prices already lifted by tension between
Iran and Israel. [ID:nL01718790]

"On balance, if Iran, Nigeria and Israel can stay out of
the news for the rest of the week, traders should take
profits," Mark Pervan, a senior commodities analyst at the
Australian & New Zealand Bank, said in a research note.

Behind the rally in global oil prices are also expectations
of a weakness in the U.S. dollar, as it allows non-U.S.
investors to snap up crude oil at cheaper prices in dollar
terms.

Thursday's European Central Bank meeting is widely expected
to conclude an interest rate hike to deal with quickening euro
zone inflation, bolstering demand for euro-denominated assets
and euros to buy them with.

Investors also await June U.S. private sector jobs numbers
and May factory orders on Wednesday for what they have to say
about Thursday's employment data and the pace of economic
growth.

Gold XAU= was firmer at $938.95/939.95 an ounce versus
$938.40/939.40 late in New York. It rallied to hit a high of
$945.80 on Tuesday, its strongest level in more than two
months, on the back of rising oil prices and weak stock
markets.

But August gold GCQ8 on the COMEX division of New York
Mercantile Exchange, retreated $3.1 an ounce to $941.4 on
profit taking after settling nearly 2 percent higher.

At the Chicago Board of Trade, front-month July soybean
futures SN8 rose to 8-¼ cents to $16.36-¼ a bushel after
hitting a record high of $16.41-3/4, as the USDA's Monday
report stoked concerns that U.S. soybean stocks could fall to
historically low levels.

U.S. corn futures bounced back, recovering from a two-week
low marked the previous day on bearish data issued this week by
the U.S. Agriculture Department.

July corn futures CN8 rose 0.5 percent to $7.23 a
bushel.