June 01, 2008	Sunday	Jamadi-ul-Awwal 26, 1429

NEW YORK, May 31: Gold ended more than 1 percent higher on Friday after hitting a two-week low, as a weaker dollar, oil gains and sharp declines in bullion prices in past sessions attracted investors and bargain hunters.

Other precious metals largely followed suit, with spot platinum and palladium recovering from three-week lows and silver bouncing back from a four-week trough.

Spot gold rose as high as $889.60 an ounce and was at $885.95/887.55 by New York’s last quote, against $877.85/879.25 late in New York on Thursday.

Physical demand for gold has slowed near the high prices struck last week and demand may not improve significantly unless buyers are convinced that prices are poised to climb again, analysts said.

Physical demand has almost dried up in key markets like India, due to lack of any major festivals in the near term, analysts with Vision Commodities Services said in a note.—Reuters