Gold up 1 percent, other metals jump on strong oil

By Chikafumi Hodo TOKYO (Reuters) - Gold rebounded more than 1 percent and silver jumped nearly 4 percent on Monday as a recovery in oil prices fuelled active short-covering after heavy sell offs last week hammered down prices to multi-months low. Platinum and palladium also rallied about 4 percent, but concerns over a slower economy and a strengthening dollar overshadowed the precious metals market, traders said. "Gold rebounded mainly on technical short-covering. It may rebound above $800, looking at the dollar and oil," said Shuji Sugata, manager at Mitsubishi Corp Futures and Securities Ltd. "Gold and other metals have recovered a bit, but it's still early to say they will recover continuously. Gold and oil prices are still in a downward trend," Sugata said. Spot gold was trading at $797.45/799.45 an ounce as of 9:52 p.m.... [read full story]