Gold and Platinum Rise as Dollar Slides

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"We saw a good amount of support at these levels about a week-and-a-half ago and there was a bounce off of that," said Merrill Lynch metals strategist Daniel Hynes, referring to a price level of around $885. "This has set the floor for this stage and it will be what gold will rally from, until the momentum is strong enough to keep it going."

Gold rose more than 1 percent on Friday after hitting a two-week low on a weaker dollar and as sharp declines in past sessions attracted bargain hunters.

Other precious metals largely followed suit, with spot platinum and palladium recovering from three-week lows and silver bouncing back from a four-week trough.

Spot gold rose as high as $889.60 an ounce and was quoted at $885.70/886.70 by 1447 GMT, against $877.85/879.25 late in New York on Thursday. It fell about 6 percent this week to a low of $870 on Friday, its lowest point since May 15.

"We saw a good amount of support at these levels about a week-and-a-half ago and there was a bounce off of that," said Merrill Lynch metals strategist Daniel Hynes, referring to a price level of around $885. "This has set the floor for this stage and it will be what gold will rally from, until the momentum is strong enough to keep it going."

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