Gold gained on Friday as a rebound in oil prices restored its appeal as a hedge against inflation but dealers said the metal must crack key technical levels to sustain the uptrend. Precious metals have been hit by heavy selling this week on declines in oil prices and a steadier dollar. Platinum was the hardest hit as fears of falling global car sales, blamed on a slowing US economy, could cut demand for autocatalysts.
Gold rose to $931.60/932.60 an ounce from $923.00/924.00 late in New York on Thursday when it struck a two-week low of $915.80 before rebounding on firmer oil Despite the rebound in gold, dealers remained cautious after its failure to hold above a four-month high of $987.75 hit last week - not far from a record high of $1,030.80 struck in March. New York gold futures added $9.9 to $932.20 anounce. Spot platinum fell as low as $1,702.50 an ounce, hovering near Thursday's six-month low of $1,701.50, before bouncing to $1,731.00/1,751.00, up from $1,709.50/1,729.50 late in New York.
The most active Tokyo gold contract for June 2009 delivery on the Tokyo Commodity Exchange fell 10 yen per gram to 3,224 yen. Spot palladium rose to $388.00/393.00 an ounce from $382.00/390.00 late in New York. Silver edged up to $17.54/17.60 an ounce from $17.34/17.40 late in New York.