TOKYO (Reuters) - Gold steadied to trade above $955 per ounce on Monday after ending the previous session lower, drawing support from news that European central banks have extended an agreement limiting gold sales.
Last week the precious metal retreated from a two-month high above $970 when the dollar rallied on renewed hopes for an improvement in the economy.
Bullion drew support from news late last week that a group of central banks in Europe had renewed the Central Bank Gold Agreement (CBGA), a pact to limit gold sales for a five-year period to 400 tonnes a year from 500 tonnes.
Gold was at $956.45 per ounce at 0559 GMT, up 0.3 percent from the notional close in New York of $953.80.
U.S. gold futures for December delivery edged down to $958.20 per ounce after falling $3.4 to $959.50 on Friday.
Yukino Yamada, a senior strategist at Daiwa Institute of Research, said signs of a recovery for the global economy had made it easier for money to flow into assets that directly benefit from this such as stocks and copper.
But she added that gold-backed exchange-traded funds had not fallen drastically, indicating continued interest in investing in gold.
"I think we'll see buying if gold should fall to $900," she said, adding that the dollar will continue to help provide investors with a means of judging when to invest in gold.
The dollar gained more than 1 percent against a basket of currencies on Friday after the July U.S. jobs report gave the clearest indication yet that the economy is turning around from a deep recession. It retained most of those gains on Monday.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,068.90 tonnes as of Aug 7, down 3.97 tonnes or 0.4 percent from the previous business day.
Holdings have mostly been falling since hitting a record of 1,134.03 tonnes on June 1.
Noncommercial net long U.S. gold futures positions rose 12 percent to 193,514 lots in the week to August 4 from 172,771 lots, a weekly report by the U.S. Commodity Futures Trading Commission showed.
Spot platinum fell to $1,251.50 per ounce, down 0.8 percent from the notional close in New York of $1,261.50.
The metal, used in automobile catalysts and jewellery, has lost support since South Africa's biggest union said on Saturday it was considering a wage offer from state power firm Eskom after marathon talks to avert a strike that could cripple Africa's biggest economy.
The nation is by far the world's biggest platinum producer and also a major gold supplier.
