Gold jumped 2 percent on Tuesday after gains in the equities markets and rebounding oil spurred buying from investors, who were looking next to an expected US interest rate cut and economic data for direction. Platinum also bounced but held near five-year lows on worries about falling demand for autocatalysts after automakers cut output.
Honda Motor Co cut its annual profit forecast as a deepening financial crisis hammers global car demand and sends the yen soaring. Gold was trading at $745.00 an ounce by 0646 GMT, up $15.40 an ounce from New York's notional close on Monday, having hit an intraday low of $723.70 as early losses in stock markets forced investors to sell bullion to cover losses.
Oil erased early losses to rise by $1 to above $64, tracking a rebound in Asian stock markets as investors returned to buy beaten-down shares. Platinum was trading at $808.50 ounce, up $36.00 from New York's notional close on Monday, when it fell as low as $732.50 an ounce. Platinum has lost almost a quarter of its value since spiking to a lifetime high of $2,290 in March. The automotive sector, which accounts for around half of all platinum demand, has been hit hard by the prospect of recession.