Silver will follow gold higher, though again upside potential is limited, they added.

Platinum will remain in its $350.00-$360.00 range.

Uncertainties about hedge funds' short positions, hints of a US interest rate cut, the weakening dollar and worries about equity prices have combined to give gold a firmer tone than of late, analysts said.

Ranged against the bulls are fears of further central bank sales, tempting forward sales opportunities for Australian miners and the possibility that dollar and interest rate forecasts may prove wrong.

"On balance, the ingredients for a short-term rally outweigh the risk of a swift setback," said Tony Warwick-Ching, metals analyst for Flemings Global Mining Group, in a daily report.

That view was echoed by several European dealers, all of whom cautioned of upside resistance at $297.00 and above.

"I wouldn't be surprised to see us trying the$295.00 area seriously today," said one London dealer.

"If that goes, then $297.00/$298.00 will be the next level, but I'm Not too sure we'll break that," he added, a view echoed by a Swiss dealer.

"With producers still generally bearish over the medium term - and remember in Australian dollars for example, prices are still close to two-year highs of around A$500/ounce - expect any rise in prices to be met with increasing producer selling," said Alan Williamson, metals analyst at Deutsche Morgan Grenfell Securities Ltd, in a report.

At 0805 GMT spot gold was quoted at $295.20/$295.70, up from Thursday's close in New York.

Silver:

Silver would also move higher, though more due to moves in gold than anything else, dealers said.

At 0807 GMT spot silver was quoted at $5.18/$5.21, up from Thursday's close.

Platinum:

Platinum was caught between Russian sales and steady consumer interest, which have kept it to a narrow range through the week, near long-term support at$350.00.

"Sustained Russian selling has brought platinum to critical support at$350.00, a level which has held pretty well for the last few years but now looks under threat," said Ross Norman, an independent platinum group metal analyst in his weekly report.

"Happily, there are a wealth of buyers at these levels, anxious to build stocks in anticipation of renewed problems in early 1999," he said, adding that lease rates and prices were likely to come under further downside pressure.

At 0805 GMT spot platinum was quoted at $357.50/$359.50, down from Thursday's New York close.