LONDON, Sept 27: Gold jumped one per cent to a two-week high to trade just below $600 an ounce on Wednesday, supported by firmer oil prices and improved physical buying in key markets, dealers said.
But the metal was expected to face tough resistance in breaching the $600 level as higher prices might encourage investors to pocket profits, they said.
I think there is not a clear trend yet. We are still stuck into recent ranges. I don't really call for a resumption of an upward trend yet, said Costanza Jacazio, precious metals analyst at Barclays Capital.
The two main elements that should give direction to gold in the next two-three months are the dollar and oil, she added.
Spot gold rose as high as $596.80 an ounce before easing to $594.00/595.00 by 0955 GMT, against $590.80/591.80 in New York late on Tuesday, when it gained nearly $5.
Gold is often seen as a hedge against inflation. The metal is also influenced by currency moves and generally trades in the opposite direction of the dollar.
In other metals, platinum rose to $1,139/1,144 an ounce from $1,128/1,133 in New York, while spot silver was up at $11.60/11.70 an ounce, against $11.35/11.42. Palladium rose to $316/320 an ounce, from $312/318 in the US market.
Plc said trading in the first half of the year had been in line with expectations and predicted increased growth in the second half.—Reuters
