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Gold recovers losses, safe-haven appeal intact
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LONDON: Gold was little changed within sight of its recent all-time highs on Thursday, recovering from an earlier drop on upbeat US labour data as investors remained unconvinced of the resilience of the world's largest economy.
Gold has risen by some 15 per cent in 2010 as economic uncertainty has unleashed a wave of investment in perceived safe-haven assets.
Spot gold was bid at $1,254.40 an ounce at 1437 GMT from $1,254.50 late in New York on Wednesday and less than 1 per cent below June's record high at $1,264.90 an ounce. Earlier it fell to $1,250.30 an ounce.
US gold futures for December delivery were last down $1.5 at $1,256.00 an ounce.
In fundamental news for gold, the South African statistics office said gold output fell 3.4 per cent in volume terms, while total mineral production fell 1.0 per cent in July.
Gold output has been dwindling in South Africa, which is expected to drop in the rankings to the world's fifth-largest producer this year from fourth in 2009, according to Reuters data.
In other precious metals, silver was bid at $19.99 an ounce, against $19.88 on Wednesday when it hit its highest level since early 2008, as investors sought a cheaper safe-haven alternative to gold.
In the platinum group metals, traders kept an eye on developments at South African miner Northam Platinum, where union members are currently on strike and say action may continue for months.
Platinum was last quoted at $1,558.00 an ounce, compared with $1,554.00 the day before, while palladium was at $525.50 compared with $522.00 on Wednesday. -Reuters
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