Gold futures in New York bounced from a four-week low on Tuesday as investors returned to commodities after a steep sell-off last week that dropped prices to cheaper levels, dealers said.
Crude oil's rise back above $70 a barrel helped boost gold as both a component of the broader commodities basket and as an inflation hedge, while an uncertain US dollar outlook also supported gold as a currency alternative.
As investors stampeded back into metals holdings, silver prices jumped 4.8 percent and US copper futures trading was briefly halted after rising the daily 20-cent maximum limit.
"It's renewed fund buying after the correction. People found the opportunity to go back in the market," said Frank Aburto, a broker at Rosenthal-Collins Group.
Gold for June delivery gained $11.30, a rise of 1.7 percent, to $669 an ounce by 9:55 am EDT at the New York Mercantile Exchange's COMEX division, dealing from a session low of $651.50 to a peak at $669.30. Futures fell as low as $636.80 on Tuesday, a low since late April, before bargain hunters resumed buying.
Next resistance in COMEX gold was $675, while initial support lurked down at $650, traders said.
COMEX gold spiked on this month to $732 an ounce, its highest since 1980, on investment buying linked to increased global tensions, high energy prices and a weaker dollar.
In gold, investors also were pre-positioning ahead of COMEX June options expiration on Thursday, traders said.
Spot gold rose to $667.40/668.20 an ounce, from Monday's New York close at $655.60/656.40. The early bullion fix in London on Tuesday hit $661.70. Bullion reached a lifetime high of $850 in January 1980.
COMEX July silver surged 60 cents to $13.03 an ounce, trading between $12.2050 and $13.05. Futures hit a 25-year high of $15.20 an ounce on May 11.
Spot silver advanced to $13.03/13.13 an ounce from $12.48/56 on Monday. Silver fixed at $12.87 an ounce.
NYMEX July platinum climbed $27.40 to $1,312 an ounce, but it held below last week's record of $1,347. Spot platinum rose to $1,307/1,315. June palladium was up $17.25 at $359 an ounce. Spot traded nearly $20 higher at $356/361.
Comments
Comments are closed.