Gold rebounded to gain more than 1 percent on Wednesday after hitting two-month lows in the previous session as firmer oil and a slightly weaker dollar against the euro prompted investors to snap up the metal.
But analysts said the broad commodities sell-off in recent days had damaged near-term sentiment and bullion investors would be cautious in chasing the metal higher ahead of US payrolls data on Friday that could influence the dollar. Gold hit a high of $894 and was at $891.50/892.40 an ounce, up from $884.20/885.40 late in New York on Tuesday, when it fell as low as $872.90.
A decline of three percent on Tuesday took overall losses to 15 percent since gold hit a record high of $1,030.80 last month, making bullion attractive for physical dealers. A weaker dollar makes gold cheaper for holders of other currencies and often lifts bullion demand. The metal is also generally seen as a hedge against oil-led inflation. In other precious metals markets, US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange rose $7.8 an ounce to $895.60. Spot platinum rose 1.6 percent to $1,948/1,958 an ounce from $1,918/1,928 on Tuesday, when it fell to a low of $1,888. Silver rose to $17.03/17.08 from $16.81/16.86 an ounce on Tuesday, when it hit a two-month low of $16.32. Palladium rose $2 to $437/442 an ounce.
But analysts said the broad commodities sell-off in recent days had damaged near-term sentiment and bullion investors would be cautious in chasing the metal higher ahead of US payrolls data on Friday that could influence the dollar. Gold hit a high of $894 and was at $891.50/892.40 an ounce, up from $884.20/885.40 late in New York on Tuesday, when it fell as low as $872.90.
A decline of three percent on Tuesday took overall losses to 15 percent since gold hit a record high of $1,030.80 last month, making bullion attractive for physical dealers. A weaker dollar makes gold cheaper for holders of other currencies and often lifts bullion demand. The metal is also generally seen as a hedge against oil-led inflation. In other precious metals markets, US gold futures for June delivery on the COMEX division of the New York Mercantile Exchange rose $7.8 an ounce to $895.60. Spot platinum rose 1.6 percent to $1,948/1,958 an ounce from $1,918/1,928 on Tuesday, when it fell to a low of $1,888. Silver rose to $17.03/17.08 from $16.81/16.86 an ounce on Tuesday, when it hit a two-month low of $16.32. Palladium rose $2 to $437/442 an ounce.
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