Gold dipped on Friday as profit taking kicked in after a rally the previous day, but investors were reluctant to take new positions ahead of the release of US payrolls report. Spot gold fell to $693.35/693.85 an ounce from $695.70/696.30 an ounce late in New York on Thursday.
When it rallied to its highest in 16 months at $697.70 an ounce on strong physical demand, technical buying and firm energy prices. Gold fell on Friday but held near a 16-month high due to strong energy prices and healthy physical demand, with the metal gaining safe-haven appeal amid instability in financial markets and growing geopolitical tensions.
Palladium was steady at $333/338 an ounce. Silver inched down to $12.37/12.40 ounce from $12.42/12.45 an ounce. It had rallied to $12.52 an ounce on Thursday, it's highest since August 16. "The market will likely test spot gold above $700 because of strong technically, with a lot of physical demand expected from India and the Middle East," Kikukawa said.
Spot gold was trading at $693.00/693.50 an ounce, down from $695.70/696.30 late in New York on Thursday, when it rallied to its highest in 16 months at $697.70. Investors are looking for the Federal Reserve to cut interest rates by at least 25 basis points later this month and possibly more from the current 5.25 percent to shelter the economy from the turmoil in credit and money markets.
Platinum rose to $1,285/1,290 an ounce from $1,284.50/1,291.50 late in New York on Thursday, when it rose to a four-week high of $1,286.50 an ounce. Palladium was steady at $333/338 an ounce. Silver inched down to $12.37/12.40 ounce from $12.42/12.45 an ounce. It had rallied to $12.52 an ounce on Thursday, it's highest since August 16.