Gold slipped a touch on Tuesday as oil languished, but recovered from session lows as the dollar softened against the euro after disappointing US economic data. Gold was at $881.90/882.90 an ounce at 1442 GMT, against $883.60/884.80 an ounce late in New York on Monday.
The precious metal came under pressure in earlier trade as traders took profits after a strong session on Monday, when gold jumped as high as $894.70 an ounce on the weaker dollar. A dip in crude prices after Monday's record highs dampened sentiment towards the precious metal, which is often bought as a hedge against oil-led inflation. "If oil prices are poised for a potential fall, players are going to hold back from buying gold in anticipation of that," said Fairfax IS analyst John Meyer.
Among other precious metals, silver edged down to $17.01/17.07 an ounce from $17.16/17.22 late in New York on Monday, when it jumped to a one-week high of $17.40 due to a weaker dollar and gains in gold. Spot platinum rose to $2,052.00/2,062.00 an ounce from $2,038.50/2,058.50 late in New York. Earlier on Tuesday, Zurich Cantonal Bank (ZKB) told Reuters its platinum exchange-traded fund has grown 45 percent in volume terms from February to a record 62,300 ounces.
Increased car buying is fuelling demand for the metal, which is used in autocatalysts, while supply remains problematic after a power shortage hit major producer South Africa earlier this year, the bank said. "The platinum market has the strongest fundamentals in the near term, as the power problems in South Africa keep the market on tenterhooks," said Barclays Capital in a note. Spot palladium was steady at $455.00/463.00 an ounce against $456.50/464.50. It hit a high of $460 an ounce on Monday, its strongest level since April 18.
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