LONDON, Sept 4: Gold rebounded on Thursday, rising by almost 2 per cent to move back above $800 an ounce as the dollar eased off an 8-month high against the euro.

Bargain hunting and physical buying also boosted prices after the metal had slipped close to its lowest level in nine months on Wednesday following a broad-based dollar rally and weaker oil prices.

Platinum also posted strong gains in volatile trade, with the metal rising by more than 3 percent on the day as bargain hunters emerged following a series of heavy losses for the autocatalyst material.

Gold rose to a high of $814.70 an ounce before easing slightly to trade at $810.00/811.00 from $800.05/801.65 an ounce late in New York on Wednesday, when it extended consecutive losses to a fourth day.

Gold has held up pretty well given the stiff head winds it has been facing in terms of the dollar’s rally of late, said Standard Chartered analyst Daniel Smith.

Gold fell as low as $789.05 an ounce on Wednesday, near its nine-month low of $773.90 seen in mid-August, with dollar strength and the decline in oil prices reducing the metal’s appeal as a hedge against inflation and currency weakness.

Demand from India, the world’s largest consumer, and also the Middle East helped to stem the fall.

Later on Wednesday investors will be watching for interest rate decisions from the Bank of England and the European Central Bank, which may set the tone for the dollar’s next move.

Platinum pared early losses, which saw the metal slip to a two week low, to rally by almost 3 per cent on the day as bargain hunters and the dollar’s dip eased the metal off its lows.

Spot platinum hit an intraday low of $1,318 an ounce, down from $1,377.50/1,397.50 late in New York on Wednesday, before reversing to trade at $1,408.50/$1,428.50 an ounce.

Platinum has fallen by almost 40 per cent since touching a record high of $2,290 an ounce back in March.

Autocatalysts, used to clean exhaust fumes, account for more than half of global platinum use.

Platinum’s sister metal palladium rose to $288.50/296.50 an ounce from 282.50/290.50, while silver tracked gold higher to trade at $13.09/13.15 an ounce from $12.84/12.97 an ounce

—Reuters