Gold holds out in wave of selling

Gold held out against a wave of selling in precious metals in Europe yesterday, fortified by favourable currency moves, while palladium and platinum prices were slashed as speculators unloaded positions.

Palladium and platinum, used in jewellery and in auto catalytic converters, came under heavy pressure after fund buyers sold in Asian trade overnight mindful of the dollar's uptrend on Wednesday amid increasing prospects of higher US interest rates.

A stronger US currency makes dollar-priced metals less attractive for holders of other currencies like the yen and the euro.