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Droopy gold price looks over its peak

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SCMP Reporter

GOLD lost further ground in Europe yesterday and the price was fixed in London in the morning at US$382.75 an ounce, down from $383.25 on Thursday afternoon.

Silver was quoted at $5.3475, down from $5.5425.

London's morning platinum fix was $397.75 an ounce, up from Thursday afternoon's fix of $396.25. The morning palladium fix was $134.50 per ounce, up from $134.25 on Thursday afternoon.

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Economic reports earlier this week showing the US economy continues to expand at a moderate pace have not quelled expectations that the Federal Reserve may raise interest rates for a fifth time this year.

''We've seen the top of the rallies in gold and silver,'' said Ted Arnold, analyst with Merrill Lynch. ''Higher interest rate fears will inhibit much more upward movement.

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''Producers who hoped silver would hit $6 before they had to sell will have to be content with $5.60.'' Earlier in Tokyo yen-denominated gold futures closed firmer, backed by slight rises in the New York market overnight and the dollar's strengthening against the yen in Tokyo, dealers said.

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