Gold rallied more than 2 percent to a six-week high yesterday as a softer dollar and a call from India's ruling party chief to review import restrictions on gold prompted a wave of short covering. Gold was fixed at $1 263 an ounce (R445 174 a kilogram) in the afternoon in London , $22 up on Wednesday's second fix. "Just like the sell-off last week was triggered by overextended longs, today's move was triggered by the false break below $1 236 earlier, which got a few too many involved on the short side," Saxo Bank head of commodities research Ole Hansen said. "The bounce got wings with the help from a weaker dollar and the story from India ." Platinum shrugged off the impact of a strike at South African mines, with consumer demand expected to be met from ample above-ground stocks. The white metal ignored strength in gold, falling $4 to fix at $1 454 an ounce, as traders bet recent price rises ahead of the strike, which started yesterday, had been overdone. - Reuters Cape Times
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