Gold demand to rise?

Gold held above a one-month low on speculation that the biggest decline this year may spur demand as holdings in the largest exchange-traded product backed by the metal expanded to the highest level since April. The metal sank to $1,303.10 yesterday, the lowest since June 19, before ending 2.4 percent lower, the largest drop since December.

While there may be some buying on dips, gold will probably remain under pressure as equities rally, concern eases over Portugal’s banking problems and geopolitical tensions don’t worsen

Silver for immediate delivery traded at $20.9245 an ounce from $20.9187 yesterday, when prices tumbled 2.5 percent, the most since February.

Spot platinum increased 0.3 percent to $1,497.85 an ounce after a 1.2 percent drop yesterday that was the most in a month. Palladium added 0.2 percent to $872.50 an ounce.