Gold extended losses and held near it's lowest in two weeks on Monday, but dealers expected physical buyers to offer support at lower levels. Tokyo gold futures rose on covering despite a firmer yen. Spot gold fell to $669.50/670.30 an ounce from $672.30/672.90 late in New York.
Gold hit an intrude low of $658.10 an ounce on Friday before rebounding on safe-haven buying and as the Federal Reserve pumped money into the banking system to ward off a global credit crisis. Most active June 2008 gold futures on the Tokyo Commodity Exchange rose 25 yen per gram to 2,573 yen.
The yen edged up against the dollar on Monday as a squeeze in money markets from the spreading US supreme mortgage distress prompted investors to trim risky positions such as carry trades. The dollar eased to 118.30 yen from near 118.40 yen in late US trade on Friday, holding off the four-month low of 117.19 yen hit on electronic trading platform EBS last week.
The euro was little changed near 162.00 yen, having crawled back from a four-month low of 159.98 yen hit on Friday. Platinum fell to $1,270/1,275 an ounce from $1,272/1,276 late in New York on Friday, when it fell to a six-week low of $1,260 an ounce.
Silver edged down to $12.77/12.80 an ounce from $12.82/12.80 late in New York. It had tumbled to a five-week low of $12.57 an ounce on Friday to track losses in gold. Palladium fell to $350/355 an ounce from $351/355 an ounce in New York on Friday, when it fell to $346 an ounce its lowest since mid-March.
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