Gold extended gains on Wednesday as fears of rising inflation, tensions between Russia and the West and a rebounding euro spurred speculative buying. Platinum gained more than 1 percent to track gold but gains maybe limited with automakers still on the sidelines. Palladium and silver also gained. Gold rose to $827.25/828.25 an ounce from $822.90/824.30 an ounce late in New York on Tuesday, when it gained more than $2 an ounce.
"Gold is still consolidating for the time being. But it seems the market is still a little bit worried about the global economy," said Dick Poon, manager precious metals at Heraeus Ltd in Hong Kong. Gold has bounced nearly 7 percent since tumbling to a nine-month low around $773 in mid-August but the metal is well below a record high of $1,030.80 struck in March.
Analysts said chart-based support will hold prices above $800 an ounce. The new benchmark contract on the Tokyo Commodity Exchange, August 2009, was at 2,919 yen per gram after opening at 2,926 yen. Spot platinum rose to $1,433.00/1,453.00 an ounce from $1,409.50/1,429.50 late in New York as bargain buying persisted after the metal sank to an 11-month low around $1,296 last week.
The bulk of the world's platinum is used by automakers in autocatalyst systems that scrub exhaust fumes of dangerous and environmentally damaging chemicals. Platinum prices are well below a lifetime high of $2,290 hit in early March. Spot palladium inched up to $288.50/296.50 an ounce from $282.00/290.00 an ounce. Silver edged up to $13.66/13.72 an ounce from $13.56/13.64 an ounce late in New York.