Gold remained in the space it has occupied for the much of the past few weeks despite unexpectedly weak US retail sales figures today.
The below forecast numbers pulled back the dollar but despite this the spot gold price barely moved from the overnight close at US$1,296 in early trading in the US. Gold and the dollar traditonally move in oppostie directions.
UBS today suggested the lack of movement recently was indicative of the low level of interest in the metal among investors currently.
The Swiss bank's near-term forecast is now $1,250 from $1,280 an ounce and for three-months US$1,300 from US$1,350.
Headwinds for the metal remain the prospect of a stronger US dollar with the US Federal Reserve in stimulus tapering mood as the US economy improves, it said.
Any move by the European Central Bank in June to cut eurozone rates will also boost the dollar further.
The situation in Ukraine is acting as a prop said traders with attention now focused on the presidential vote on 25 May after the pro-Russian provinces’ referendums on Sunday.
Silver added a few cents to US$19.55 while platinum jumped US$20 to US$1,452 after an outbreak of violence at the weekend as miner Lonmin attempted to instigate a return to work.
Police have been drafted in around the mining area of Rustenberg to assist any workers who do decide to return.
Reports from South Africa say there are armoured cars around Lonmin’s Marikana mine where 34 peope were killed by the police almost two years ago during the widespread industrial unrest that year.
The platinum mining companies say they have lost production worth US$1.6bn during the four-month long strike.
Major movers
Randgold Resources down 30p at 4,573p
Fresnillo down 9p at 824p
Anglo American down 7p at 1,634p