Gold ticked up on Monday but failed to climb above a recent narrow trading range as mostly upbeat US data took some shine off the precious metal, which withers when economic recovery gains traction. Recent upbeat economic data from key economies suggested a brighter outlook, which dulls gold's safe-haven appeal and weakens the case for prolonged monetary stimulus, cutting gold's draw as an inflation hedge.
Platinum and palladium, however, have benefited due to their industrial application. "Investors remain fairly optimistic in the US recovery, which makes gold less attractive, even though recent data is rather a mixed bag," said Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen. Trading interest in the Chinese market is expected to wind down this week, as China approaches a week-long Lunar New Year holiday starting this Saturday, Chen added.
Spot gold inched up 0.3 percent to $1,670.65 an ounce by 0709 GMT. US gold was little changed at $1,671.40. The benchmark gold on Tokyo Commodity Exchange hit a record high of 5,000 yen a gram, boosted by a weak yen on expectations that the Bank of Japan will continue loosening its monetary policy. Spot platinum rose as much as 1.5 percent to $1,705.25, its highest in nearly four months. Spot palladium gained as much as 0.7 percent to $759.75, its loftiest level since September, 2011.
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