March 16, 2003	Sunday	Muharram 12, 1424

NEW YORK, March 15: Gold steadied above a three-month low on Friday, settling into a range near fair value after investors with safe-haven positions threw in the towel on Thursday, dealers said.

April gold ended up 60 cents at $336.60 an ounce, trading $339.50-$332.40. On Thursday it bottomed at $332, its lowest since Dec. 13.

Spot gold closed at $336.10/90, up from $334.65/5.65 late Thursday and a low bid that day of $331.30. London fixed the afternoon spot reference price at $335.20.

The dollar firmed against the euro Friday, capping gold, but was in sight of Tuesday’s four-year low at $1.1084 per euro. The Dow Jones industrial average seesawed after Thursday’s 269-point surge sucked capital away from gold.

Gold, theoretically, should remain stable against the geopolitical backdrop. But money is money is money is money, said another bullion dealer. You also have to protect your portfolio.

The low $330s area is important support. It was tough resistance last year, as gold’s bull market was unfolding, and the breakout point in December for the rally that topped last month at a 6-1/2-year high of $390.80 in April gold.

As such, we view the current rebound from $331.75 as a mini-correction which should top out in front of $340, their commentary said.

Bullion dealers saw more resistance at the 100-day moving average at $341.61, broken on Thursday, and important support at $328.55, the 200-day moving average.

Estimated gold futures volume was 38,000 contracts, down from Thursday’s frantic 74,721 lots. Open interest slipped a mere 1,118 lots Thursday, as fresh selling offset some of the liquidation.

The CFTC said in its Commitments of Traders report after the close that the net speculative long position in gold rose to 33,549 on Tuesday, from 30,976 a week earlier.

May silver slipped 0.2 cent to $4.538 an ounce, trading between $4.555-$4.515. Spot silver closed unchanged at $4.53/55. It was fixed in London at $4.54.

NYMEX April platinum rose $1.40 to $683.60 an ounce. Spot platinum was last quoted at $685.00/690.00 an ounce.

June palladium rose 90 cents to $234.40 an ounce. Spot palladium fetched $230.00/235.00 an ounce.—Reuters