Gold Steadies on Global Uncertainty, Platinum and Silver Gain

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It's going to be choppy. I think the market is closely watching developments in oil at the moment. If it breaches $950, I think it's going to look interesting," said Mark Pervan, senior commodities analyst with ANZ in Melbourne. "I think around that level it could move higher from there because it could trigger a short-covering rally at that point and some stop-loss selling."

Gold steadied on Friday, within sight of its highest level in almost three months hit the previous day, as strong oil prices helped the metal resist selling pressure from speculators and jewellers.

Platinum hit a one-week high on bargain hunting and gains in Tokyo futures, after falling to a two-month low on Tuesday on fears that a slowing U.S. economy could weaken demand for the precious metal used in auto catalysts.

Gold was at $944.45/945.45 an ounce, steady from $944.10/945.30 late in New York, having hit a low of $941.40 an ounce as speculators booked profits and jewellery makers in parts of Asia cashed in on the metal's gains.

"It has to stay above $950 before there's a chance to test new highs. Otherwise, it will just move back and forth between $910 and $940," said Ronald Leung, director of Lee Cheong Gold Dealers in Nong Kong.

Gold jumped as high as $947.40 an ounce on Thursday, its strongest since April 17, when it touched $952.60 an ounce.

"It's going to be choppy. I think the market is closely watching developments in oil at the moment. If it breaches $950, I think it's going to look interesting," said Mark Pervan, senior commodities analyst with ANZ in Melbourne. "I think around that level it could move higher from there because it could trigger a short-covering rally at that point and some stop-loss selling."

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