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Gold prices slip back towards support

LONDON: Gold slipped back towards support at $300 a troy ounce in Europe on Tuesday afternoon as negative news depressed a thin market.

"The price would tend to drift lower in a thin market anyway, then we had news from Ashanti which was more negative than positive and a kneejerk reaction to Dutch sales," a dealer in London said.

Ghanaian mining company Ashanti Goldfields Co Ltd signed a $100 million loan on Tuesday and renewed a $270 million revolving credit facility as it formalised a rescue deal negotiated last week.

The company, which is Africa's third largest gold producer, came close to collapse after a spike in gold prices last year flipped its hedge book from profit into loss.

The Dutch Central bank said on Tuesday afternoon it sold seven tonnes of gold for 71 million euros last week as part of its programme to sell 100 tonnes before next September.

Platinum and palladium recovered in volatile conditions in afternoon trade after dipping in the morning.

"Platinum and palladium will remain at high levels until we get some clear indication of direction from Russia," a dealer said.

Palladium was indicated at $790.00/$820.00 at 1549 GMT, just shy of Monday's all-time high of $800, and up from Monday's London close at $770.00/$780.00.

Platinum was indicated at $515.00/$525.00 from $518.00.$528.00.

Silver barely moved on Tuesday, and was indicated at $5.21/$5.24 in late afternoon trade, unchanged from its previous close.-Reuters