March 14, 2007	Wednesday	Safar 24, 1428

LONDON, March 13: Gold firmed on Tuesday tracking a rebound in oil prices, but the metal was likely to trade in ranges ahead of the release of key US economic data this week.

Analysts said that after a consolidation phase, gold wouldmove higher on the back on an expected weakness in the dollar.

We are still bullish and see $725-$750 an ounce into the next year but for the time being, we are pretty comfortable with the current $640-$660 level, said Michael Lewis, global head of commodities research at Deutsche Bank.

Spot gold rose to $651 an ounce before easing to $649/650 by 1108 GMT, against $647.00/ 647.75 late in New York on Monday, when it dropped nearly $3 due to a fall in oil prices.

There is still some concern of equity market jitters...I think there is going to be a limit to how much people start to put aggressive long positions back on in gold, Lewis said.

Gold rallied to a one-week high of $658 on bargain hunting on Friday, having fallen to a six-week low of $632.30 on March.

6, when tumbling global stocks and a rising yen forced risk-averse investors to sell gold to cover their losses.

Lewis said the metal was likely to strengthen in the secondhalf of the year and early 2008, helped by an expected decline in the dollar against the euro.

A fund manager at Blackrock Inc. said late on Monday analysts were too bearish in their forecasts for commodity prices, which in turn under valued mining shares, particularly those of base metal producers.—Reuters