Gold and Platinum Start Week on Positive Note

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"We saw high levels last week, and we retraced very fast. Maybe we will keep the trading range of $950 to $975," said Louis Lok, a dealer at Bank of China in Hong Kong. With bullion holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, at a record high above 700 tonnes NYS, there was a possibility of a sellback, said Lok.

Gold regained ground yesterday, as oil jumped more than $1 after talks between Iran and world powers over Tehran's nuclear programme ended in stalemate, boosting the metal's safe-haven appeal.

Platinum also rebounded but held near its lowest level in more than two months on fears of falling demand. Overall trading in precious metals was slow in the absence of Japanese traders with the Tokyo Commodity Exchange closed for a holiday. Gold rose to $960.50/961.50 an ounce from $955.45/957.05 an ounce late in New York on Friday, when it fell to a one-week low of $949.50 as signs of stability in financial markets dimmed its safe-haven appeal.

"Right now, market sentiment may be cloudy. We saw high levels last week, and we retraced very fast. Maybe we will keep the trading range of $950 to $975," said Louis Lok, a dealer at Bank of China in Hong Kong. With bullion holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, at a record high above 700 tonnes NYS, there was a possibility of a sellback, said Lok.

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