February 29, 2008	Friday	Safar 21, 1429

LONDON, Feb 28: Gold fell on light profit-taking on Thursday, but analysts said the metal remained within sight of record highs and was likely to head towards $1,000 an ounce on bullish sentiment.

Spot gold fell to $955.20/956.10 an ounce $957.50/958.30 late in New York on Wednesday, when it hit a record high of $964.70 on tumbling dollar and the prospect of US interest rate cuts.

Gold should remain pretty well supported.

Oil eased toward $99 a barrel, off the record levels above $102 as bulging crude and gasoline stockpiles in the United States added to the gloom over its weak economy.

Profit-taking has caused gold prices to ease back, although investment money appears likely to continue and we could see prices climb further, Fairfax investment bank said in a note.

Gold has gained around 16 per cent this year on investor demand driven by record high oil prices and the possibility of more interest rate cuts, which has raised the metal’s appeal as an alternative investment.

In the physical sector, selling from retail investors in Japan slowed down on expectations there was room for gold to rise further, while dealers in Singapore noted light selling from jewellers in Indonesia and Thailand.

Gold bars were offered at a discount of 25 US cents an ounce to the spot London prices in Tokyo, unchanged from last week.

In other precious metals, silver was off a 27-year high, palladium fell from Wednesday’s 6-1/2-year high, while platinum fell more than 2 per cent to a one-week low.

Platinum was last quoted at $2,084/2,094 an ounce, down from $2,130/2,140 an ounce late in New York. It hit a record of $2,192 on Feb. 22 as persistent power supply problems disrupted mining in South Africa, the world’s top producer.

Silver fell to $19.12/19.17 from $19.22/19.27 an ounce on Wednesday, when it touched a peak of $19.45.

Palladium fell to $541/545 an ounce from $550/555 late in New York.—Reuters