Gold poised to rally on worries of inflation
Gold slipped but held above the key $900 an ounce level, as traders awaited details of the US economic stimulus package.
Gold fell $5.1 or 0.6 per cent to $906.60 an ounce, off a peak of $930.40 touched on January 30, the highest since mid-October.
However, a survey showed gold might rebound this week on speculation that government spending to revive the economy will spark inflation, boosting the metal's appeal as a hedge against accelerating prices.
Platinum dropped in Asia, snapping a three-day rally, as some investors sold the metal following its gain over $1,000 an ounce, and on renewed concern about waning demand from the automotive industry.
Platinum for immediate delivery fell 1.9 per cent to $983.50 an ounce, and last traded at $992.50 in Singapore. The metal rose above $1,000 an ounce February 6, the first time in a month. Among other precious metals for immediate delivery, silver fell 0.3 per cent to $13.08 an ounce. Palladium gained 0.6 per cent to $213.75 an ounce. Meanwhile, copper and zinc futures jumped by the exchange-imposed daily limit in Shanghai. Copper for April delivery on the Shanghai Futures Exchange climbed 1,400 yuan, or five per cent from the previous settlement price, to 29,510 yuan a metric tonne.
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