LONDON: Gold recovered on Thursday from a 13-month low hit overnight in Asia, as an uptick in oil prices counterbalanced the stronger dollar, which is denting the precious metal’s appeal as an alternative investment. Spot gold was quoted at $727.05/729.55 an ounce at 0917 GMT, against $727.65 late in New York on Wednesday. Earlier it touched a low of $718.20, its weakest since September 2007. Crude bounced back after a 7.5 percent fall on Wednesday as investors focused on expectations oil cartel OPEC will opt to cut output at its emergency meeting on Friday. However, a number of factors still count against gold. The dollar hit a fresh two-year high against the euro as worries over the outlook for the global economy sparked a flight to safety among investors. Gold prices have gyrated in recent months as financial markets have slumped. The World Gold Council said price volatility spiked in the third quarter, rising to 39 percent from 23 percent the quarter before. Platinum slid another 6 percent, extending losses that have seen the metal shed half its value since early August, as the firmer dollar adds to pressure on prices. Spot platinum was quoted at $824/848 an ounce, down froim $831.50 late in New York on Wednesday. Earlier it touched a low of $781, its weakest level since July 2004. Its sister metal palladium edged down to $171/176 from $173.50. Silver bucked the trend to strengthen, climbing to $9.58/9.66 from $9.50 as firm demand from India supports prices. reuters
