Monday, September 18, 2006

Gold prices took a modest turn up after a sharp sell-off late last week, gaining more than $2 an ounce despite a firmer U.S. dollar that typically sparks selling across Asia.

-- Spot gold was quoted at $580.70/$582.20 an ounce at 0132 GMT, versus $578.30 in New York on Friday, when the metal had tumbled as low as $571.25 an ounce, the cheapest price paid for gold since June 20.

-- "We're seeing gold show some resilience against market forces," a bullion dealer said.

-- Gold opened at $580.60/581.75 an ounce in Sydney.

-- It has lost more than 20 percent since hitting a 26-year high of $730 in mid-May, when investors poured money into the market as a hedge against global tensions, including those over U.S.-Iran relations, high oil prices and dollar instability.

-- The dollar climbed to near five-month highs against a retreating yen as the market brushed aside calls from some in the Group of Seven countries that the Japanese currency should appreciate.

The dollar advanced as far as 118.14 yen,according to Reuters data, up from 117.53 late in New York on Friday and a whisker from recent highs around 118.15.

-- Spot palladium was down $1 at $307/314.00

$308/313.

-- Spot platinum was $3 lower at $1,154/1,162 an ounce.

-- Spot silver gained 18 cents to $10.87/10.93 an ounce.