Gold was steady on Monday after briefly falling below $990 an ounce, as the euro trimmed some losses versus the dollar, but bullion looked vulnerable to a long liquidation after it failed to stay above $1,000 an ounce.

Physical demand was also supportive for the precious metal, traders said, who saw the jewellery demand picking as as the festive period in India, one of the top gold consumers of the world, approches.

Spot gold was at $991 an ounce by 1121 GMT, slightly up from $990.95 an ounce late in New York on Friday, when gold hit a two-week low of $984.70 an ounce.

“The stronger dollar is the reason which pushed gold below the $1,000 an ounce level,” said Eugen Weinberg, Commerzbank analyst said. “On the other hand, we’d expect a pick-up in physical demand if prices decline ahead of the festive season.”

Gold’s inverse relationship with the dollar over the past few weeks

Gold hit a three-week high above $960 an ounce on Friday as buying linked to the weaker dollar pushed the metal through technical resistance, before paring gains after U.S. consumer sentiment data pressured the euro.

Spot gold hit a high of $961.00 an ounce, its firmest level since Aug. 7, and was bid at $955.10 an ounce at 1434 GMT, against $946.75 an ounce late in New York on Thursday.

Prices rose after heavy selling of the dollar late on Thursday, particularly against the Swiss franc, knocking the U.S. currency to multi-week lows versus the euro.

“In the near term is it still predominantly the currency that is in the driving seat,” said Saxo Bank senior manager Ole Hansen.

“That has managed to tip (gold) through a technical level where new buying and short covering has been triggered this morning, and that has given us a bit of momentum on the upside.”

Gold typically moves in

Gold fell in Europe on Wednesday and platinum dropped below $1,100 an ounce for the first time since May 18 as the dollar firmed against the euro, making precious metals more expensive for holders of other currencies.

Hard commodities weakened across the board, hit by global economic concerns and worries a potential clampdown on speculation in U.S. energy and commodity trading could hurt buying of the asset class.

Spot gold slipped to a low of $915.20 an ounce and was bid at $918.00 an ounce at 1414 GMT, against $923.30 an ounce late in New York on Tuesday. Meanwhile platinum was at $1,109 an ounce from $1,132, having touched a low of $1,099.

The dollar climbed broadly as growing risk aversion prompted buying of the precious metal as a safe store of value. The U.S. unit, weakness in which boosts gold’s appeal as a currency hedge, is currently the metal’s chief driver.

“In the last few

The base metals were mixed on Monday. Copper held in positive territory during the pre-dawn hours, then tacked on some more gains to mid-morning in New York, before easing through the rest of the day to finish at $2.3086/lb., up 3 2/3 cents from Friday.

Nickel was well up at mid-morning but sold off sharply from there, just pulling up out of the red late to close at $7.1002/lb., up a half-cent. Zinc declined in the pre-dawn hours, rose in early New York trading, but fell off after mid-morning to end at $0.6935/lb., down a penny. Aluminum was modestly lower, dropping less than a half-cent, to $0.7267/lb., while lead eked out a gain of less than a third of a cent, to $0.7697/lb.

Copper was a bit higher as there was little movement in the industrial metals’ prices on Monday, as “the drawdown in stockpiles is one of the fundamentals supporting

Gold had a very inconclusive day on Monday, rising from the far East to a peak of $942 in early New York trading, then plunging back to $934 at mid-morning, before moving in fits and starts through the rest of the day, to finish at $937.30/oz., down $1.70. Overnight, gold is trending higher.

Platinum peaked at $1195 in Hong Kong, but traded rangebound between $1180 and $1190 for the bulk of the day, ending at $1183/oz., down $14. Overnight, platinum is pushing higher.

Silver hit its high for the day, $14.10, early on, then declined straight through with only a few temporary blips up, and closed at its intraday low of $13.84/oz., down 23 cents. Overnight, silver is sharply higher. (Click here for charts)

It was another listless day for gold, although platinum and silver took more substantial downside hits. A better showing might have been predicted, if

Gold fell below $915 at the mid-point of Hong Kong trading on Tuesday, but that proved to be the low for the day, as the metal rallied from there to the New York open, went flat until mid-morning, when it sold off again, but then pushed higher to the end of the Comex before leveling off through the Globex to finish at $925.80/oz., up $3.20. Overnight, gold has been pushing higher. Platinum followed up Monday’s beating with a dead flat day, as it never strayed from the $1150-1170 range and ended in the middle at $1159/oz., down a buck. Overnight, platinum is trending higher.

Silver traced out almost exactly the same path as gold, closing at $13.81/oz., up 11 cents. Overnight, silver is sharply higher. (Click here for charts)

Monday’s debacle was likely fresh in traders’ minds as the precious metals limped home with modest gains in the case

Many investors are somewhat dazed and befuddled as they watch what used to be called “The Natural Resources Sector” bounce up and down as the summer season commences.  With the dollar up again, commodities including the precious metals and oil were off sharply yesterday. All in all, it was just a broadly negative day. Little was spared, including equities, which also took a serious hit.  Even perennial bull James Moore, of TheBullionDesk.com, was forced to write that, “Short-term the metal [gold] could extend lower as a result of the dollar.”  John Reade, of UBS in London, concurred, writing that, “We would not be surprised to see further short-term declines, especially in the absence of any material jewelry, physical-investment or ETF demand.”

How do you put a happy face on that? Easy, according to the folks at Casey Research. “However, the current correction is likely to prove beneficial longer-term with the

Gold closed the month of May in resoundingly positive fashion yesterday, rising steadily from the far East to late morning in New York, then leveling off and holding its gains through the rest of the day to finish at $979.60/oz., up $20.60. For the week, gold was up 2.4%.

Platinum was also strong, peaking late in Comex trading, then easing off a little on the Globex to end at $1188, up $49. For the week, platinum added 3%.

And silver completed the trifecta, posting a stellar day in which it moved relentlessly higher with few retracements, and closed at $15.79, up 64 cents. For the week, silver gained a robust 7%. (Click here for charts)

Month’s end yielded a second gangbuster day in a row for the precious metals, as all three were well into the green, with the declining dollar providing strong support and rising oil chipping in.

Gold

Gold was essentially unchanged to mid-morning in New York on Monday, at which point it tumbled more than $11, moved slightly higher into the late Globex, and finally fell again to finish at $917.40/oz., down $13.50. Overnight, gold has edged higher. Platinum was flat until the second hour in New York, but then took off in the opposite direction from gold, shooting higher straight through the Comex before leveling off on the Globex to end near its intraday high at $1129, up $28. Overnight, platinum is trending higher.

Silver peaked at $14.05 at the London open, moved jaggedly lower from there to mid-morning in New York, rallied back to the late Globex but eased at day’s end to close at $13.76, down 19 cents. Overnight, silver has pushed higher. (Click here for charts)

Though platinum fared very well, it was a disappointing day for gold and silver, which fell

Gold pushed slightly higher in Hong Kong on Monday, but there was little further action until early in the second hour of New York trading, when the metal suddenly went vertical, busting through the $900 barrier, adding $15 in less than a half-hour and topping out at $907, but that was it for the day, as it eased through the rest of the Comex and the Globex, to finish at $903.20/oz., up $17.40. Overnight, gold is slightly lower.

Platinum got the same morning ignition, but it rode the updraught all the way through the day, barely coming off its intraday highs late in the Globex to end at $1118, up $29. Overnight, platinum is trending higher.

Silver blasted off at the same time, as well, and it continued to push higher through the Comex, peaking at $13.14 before falling off modestly on the Globex and closing at $13.03/oz., up 53