Gold inched higher as the dollar gave back some of its recent gains, but there was little buying appetite said traders.
Gold has slumped this week and is more than more than a quarter below the price at the start of 2013.
The spot price rose today, by US$4.42 to US$1,230, by bears of the metal say this may only be a temporary hiatus if real US interest rates continue to rise.
Even Goldman Sachs, which slashed its target prices for the metal on Monday, seemed surprised by the speed of this week’s decline.
In a TV interview yesterday Jeffrey Currie, global head of commodities, said the selling had gone too far and the gold price would even out in the next few months.
That would be good news for gold producers, where shares prices have been under the cosh in recent weeks.
One gold company executive told Proactive Investors that if the gold price fell any further, “there would not be a gold industry,” though he was confident his company could still be profitable at US$1,200 per ounce.
Recent research by brokers has suggested US$1,200 could be a key point for many companies and below that price, hard decision would need to be taken on dividends, current operations and future expenditure.
Silver edged up to US$18.79, while platinum was US$22 higher at US$1,322.
Randgold Resources up 73p at 4,045p
Fresnillo up 16p at 882.5p
Anglo American up 11p at 1267p