Gold rose for a fourth day on Monday, buoyed by a weaker dollar, rising oil prices and investor jitters surrounding air strikes by Western powers on Libya and Japan's struggle to avert nuclear disaster. Gold trimmed early gains, following oil, but the metal stayed within a whisker of its record $1,444.40 an ounce set on March 7.
A 1 percent rise in oil prices was enough to stoke inflation worries that helped keep gold aloft, analysts said. Silver soared nearly 3 percent on strong industrial demand and near-term supply tightness, more than recouping last week's sharp losses. Gold rose 0.6 percent to $1,427.95 an ounce by 3:39 pm EDT (2039 GMT), while most-active US April futures settled up 0.7 percent at $1,426.40.
Spot silver climbed 3.2 percent to $36.16 an ounce, within striking distance to its 31-year high of $36.70, making it the top gainer in the precious metals complex. Total COMEX futures turnover was about 15 percent below its 30-day average and Friday's volume. US futures volume has been weaker than usual after a spike following last Tuesday's sharp downward move.
Bullion will likely face technical resistance in the $1,335-$1,440 area, the daily close when the metal surged to an intraday record on March 7, he said. Among platinum group metals, spot platinum gained 1.4 percent to $1,742.24. Spot palladium rose 1.9 percent at $741.72 an ounce, but is set for a near-8 percent decline this quarter, having come under pressure from investors concerned about the impact of the Japanese earthquake and soaring energy prices on the broader economy.
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