adminGold, meanwhile, struggled to break through a recent price range on the lack of a fresh catalyst.
News that Amplats, the world’s top platinum producer of platinum, would close indefinitely four of its shafts in the Rustenburg platinum belt and sell its Union mine, sent platinum up 2,1 percent to a three-month high of US$1,691 an ounce.
Platinum consequently regained its premium over gold, having gained favour with investors expecting higher prices for the metal, which is used mainly to produce jewellery and autocatalysts, against the backdrop of an improving global economy.
Spot gold was poised to test the upside limit of a recent range between US$1,653 and US$1,678, although the strength could be short-lived, as gold investors gauge the possibility of withdrawal of monetary stimulus by key central banks, such as the US Federal Reserve.
Investors are also watching the bickering in Washington over raising the US debt limit. A failure to raise the limit would see the US default as early as mid-February.
“The gold market may go through a repeat of what we saw in December, namely, varying mood swings that will result in directionless trading,” INTL FCStone analyst Ed Meir said in a research note.
“Silver will likely shadow gold quite closely, but palladium and platinum could decouple somewhat, as they seem to be more responsive to the fundamentals that, on balance, are quite supportive.”
Spot gold rose 0,5 percent to US$1 674,28/oz by 7.19am GMT. US gold crawled up 0,3 percent to US$1 674,40.
Technical analysis suggested that spot gold remained neutral in the range of US$1,653 to US$1,678 during the day, Reuters market analyst Wang Tao said.
The dollar wallowed near a one-and-a-half-week low against a basket of currencies, after Fed chairman Ben Bernanke’s comments suggested the central bank was not in a hurry to withdraw monetary stimulus. — Reuters.
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