NEW YORK, Jan 24 (Reuters) - COMEX gold futures rose Friday morning as a tarnished U.S. dollar, falling blue-chip stocks and Iraq war worries kept the safe-haven metal propped near its previous six-year highs, dealers said.
Platinum prices eased slightly in New York but still held near Thursday's 16-year peak on jitters over disruptions to output from South Africa and Russia.
February gold on the New York Mercantile Exchange's COMEX division jumped $1.60 at 1002 EST to $366.70 an ounce, a session high, after earlier trading to a low of $362.80. It made a contract high of $367.70 Thursday, a peak since December 1996.
The gold market, often used as an alternative investment option in troubled times and volatility in financial markets, is 30 percent higher than this time last year.
"Gold no longer is relating to any supply or demand fundamentals whatsoever, it is strictly and solely a function of the news," said Leonard Kaplan, president of Prospector Asset Management.
The United States said Friday it had "very convincing evidence" Iraq possessed banned weapons as a trans-Atlantic rift widened over whether Baghdad should be disarmed by force.
With little economic news out today, many gold traders held their breath for a key report by U.N. weapons inspectors due on Monday and President George W. Bush's State of the Union speech Tuesday, which many fear could turn into a call to arms.
"Going into the weekend, most people are looking for higher prices, due to the fact that we've been nervous, here we are at the highest in six years, and we're heading closer to this January 27 deadline," said one veteran New York gold trader.
Dealers peg resistance in COMEX February gold at $367.70 an ounce, and then at the $375-$380 area, while support was seen lurking at $360 and $350 an ounce.
"The market is very well supported -- every time it dips the buying comes in in size," Kaplan said.
Bullion prices also rose on the back of a tumbling dollar and Iraq war tensions.
Spot gold traded at $366.40/6.95, up from the last New York close at $364.50/5.00, but off from Thursday's peak of $367.60, which was a high since January 1997.
Friday's afternoon London fix hit a fresh six-year peak at $366 an ounce.
The dollar dropped to a new three-year nadir against the euro as concerns grew the United States would have to foot the bill alone for any swift, unilateral strike on Iraq.
The euro was trading at $1.793/94, below the fresh high of $1.0813.
The Dow Jones industrial average fell 163 points to 8,205 by mid-morning.
In other precious metals, COMEX March silver futures gained 3.5 cents to $4.82 an ounce, in a range $4.76 to $4.83.
Spot silver hit $4.80/82, up from $4.77/79 previously. Friday's fix was at $4.78.
NYMEX April platinum futures fell $4 to $634.50 an ounce, trading $641-$634.50, after reaching on Thursday the highest active-month price since August 1987.
Prices eased after the world's third-largest listed miner, South Africa's Lonmin Plc , confirmed only a small fall in output because of a blast that damaged a smelter last month.
The news was seen by analysts as already priced into the market.
Spot platinum fetched $646/$651, from the New York close at $650.50/657.50.
NYMEX March palladium fell $3 to $266 an ounce. Spot palladium was at $262/267, against $269.50/277.50 previously.