Gold slips from 4-month high, platinum down 2 pct

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold dropped on Wednesday as speculators booked profits after the metal hit a four-month high near $1,000 an ounce the previous day, while platinum fell 2 percent on fears of weakening demand for autocatalysts.

Jittery stock markets, worried about the future of U.S. mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research), record-high oil, Middle East tensions and a volatile dollar, have pushed up gold prices to a level not seen since March.

Gold fell to $970.80/971.70 an ounce from $975.90/977.90 an ounce late in New York. It rose to $987.75 an on Tuesday, its highest level since March 19, before a drop in oil and other commodities erased some of the gains.

Gold struck a lifetime high of $1,030.80 in March.

"It's a very volatile market. I think people are more cautious about the oil prices, the dollar," said Ellison Chu, senior manager at Standard Bank London in Hong Kong.

"I think we may have a chance to see $995 or something like that. On the downside, we can still go back to $960."

The physical market came to a standstill as jewelry makers watched gold prices gyrate. A fall in platinum prices to a two-month low has yet to stir up interest from jewelers, said dealers.

Oil barely changed around $138 a barrel on Wednesday ahead of U.S. government inventory data, after tumbling more than $6 on growing concerns over worsening prospects for the U.S. economy.