· Gold has rebounded above a six-week low, as the US dollar has turned lower and ushered in short-covering. Bullion was earlier pressured on proposed US tax reforms and strong economic data that supported the case for another US interest rate hike this year.
· Spot gold was up 0.5 per cent at $US1,286.60 per ounce by 4.01 pm Thursday EDT (0601 Friday AEST), after hitting $US1,277.26, its lowest since August 16. US gold futures for December delivery settled up $US0.90, or 0.07 per cent, at $US1,288.70 per ounce, after touching a five-week low of $US1,280.40.
· "The market was oversold, then got a little consolidation bounce at the $US1,280 level," said Bill O'Neill, partner at Logic Advisors in Upper Saddle River, New Jersey.
· Speculative fund investors were sticking with gold and demand was underpinned by geopolitical worries over North Korea's nuclear program and an independence vote in Iraqi Kurdistan, said Saxo Bank analyst Ole Hansen.
· Technical Fibonacci support for gold was at $US1,281.30, analysts at ScotiaMocatta said. The 100-day moving average was at $US1,271.
· In other metals, platinum was up 0.4 per cent at $US919.24 per ounce, earlier dipping to a more than two-month low at $US910.50.
· Palladium was up 0.4 per cent at $US931.00 per ounce. For the second consecutive day, palladium prices rose above platinum, after speculators piled into the market.
· Silver was up 0.4 per cent at $US16.80 per ounce after dropping to $US16.64, its lowest since August 16.
Reference: Business News
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