Gold Dips Below $900, off Seven Week Highs

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"...the next two to three days will be very telling," said Darren Heathcote of Investec Australia in Sydney. "There's potential in the days ahead we might go back below $900, but one would expect we are going to get a lot of support probably in the $870 to $880s. Likewise, we may find resistance pushing through about $930 at the moment," he said, referring to a level last seen in July.

Gold dropped below $900 an ounce on Tuesday after early buying which propelled the price to a seven-week high lost steam, but uncertainties over the US government's bailout plan may offer support.

Platinum was off two-weeks high after posting the biggest one-day percentage gain in at least 23 years on Monday, while silver firmed to its highest level in three weeks, before losing some of the gains to profit taking.

Gold was trading at $895,00 an ounce, down $5,20 an ounce or 0,6% from New York's notional close on Monday, having hit an intraday high of $908,80 an ounce -- its highest level since early August.

"I think the next two to three days will be very telling," said Darren Heathcote of Investec Australia in Sydney. "There's potential in the days ahead we might go back below $900, but one would expect we are going to get a lot of support probably in the $870 to $880s. Likewise, we may find resistance pushing through about $930 at the moment," he said, referring to a level last seen in July.

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