Gold edged higher on Thursday as speculation Egyptian President Hosni Mubarak was to step down imminently arrested early losses in the metal, but prices remained under pressure from the firmer dollar and sharper risk appetite. Spot gold was bid at $1,364.20 an ounce at 1632 GMT, against $1,362.89 late in New York on Wednesday. US gold futures for April delivery was off 60 cents at $1,364.90.
The metal earlier slipped as low as $1,350.25 an ounce as the dollar firmed and after upbeat US jobs data reinforced investor optimism over the outlook for growth, eroding some appetite for perceived safe-havens. It later pared losses among heavy speculation Mubarak was set to step down as early as tonight after days of protests in Egypt against his rule.
"Mubarak is another reason to cover shorts," said Afshin Nabavi, head of trading at MKS Finance in Geneva. The gold price has fluctuated between $1,340 and $1,370 this week, awaiting fresh direction, while Asian consumer buying has been light following the Lunar New Year holidays.
Silver was bid at $30.22 an ounce against $30.17, up 0.2 percent on the day. Platinum was at $1,839.25 an ounce against $1,853.49, while palladium was at $822.22 against $826.47. Platinum reached its highest in 2-1/2 years on Wednesday and palladium a 10-year peak, amid expectations that rising car demand would lift consumption of the autocatalyst metals. Supply issues were also supportive, analysts said.