Gold steadies below $1,000

Tuesday, September 08, 2009

LONDON: Gold held broadly steady on Monday just shy of $995 per ounce, consolidating stellar gains last week that took it tantalisingly close to the $1,000 psychological level, with buyers encouraged by dollar weakness. Investment in palladium continued to jump, sending prices close to highs for the year, with fund holdings swelling on expectations depressed auto demand would pick up. Spot gold stood at $994.70 per ounce by 1348 GMT, broadly steady from $993.40 quoted late in New York last Friday. The price rose as far as $997.20 last week, its highest since February, when it briefly topped $1,000. Gold found support at lower levels but trading ranges were narrow and volumes were said to be thinner, with investors restraining themselves due to Monday’s US public holiday. A confluence of dollar weakness, making the metal more attractive to non-US investors, and doubt about the sustainability of global economic recovery prompted a spate of investors to seek refuge in gold last week, as prices hit six-month highs. Analysts said a run to $1,000 was inevitable. “It will have a go, we are within reach,” said Ole Hansen, senior manager at Saxo Bank. “Within the first few days of this week we should have an attempt.”

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