US gold futures rose slightly in volatile trade early on Thursday, whipsawed by renewed selling with US stocks and bargain hunting after the previous session's sharp losses because of broad-based declines in financial markets.
Even though gold is often seen as a safe haven in times of financial instability, analysts expected some investors to unload holdings in precious metals and opt for liquidity amid renewed selling pressure in stock markets.
At 10:53 am EST (1553 GMT), most-active gold for April delivery on the COMEX division of the New York Mercantile Exchange was up $1.00 at $673.50 an ounce, trading in a big range of $668.30 to $680.20.
"It's just nervous, jittery type of trading right now. Gold is still pretty steady, although it's certainly run into some resistance between $675 to $680. So I still think you have that hangover from the Chinese news," said Bruce Dunn at Auramet Trading.
US stocks tumbled early as a strengthening yen stirred concern that investors were being forced to unwind carry trades in a repeat of the risk aversion that sparked Tuesday's global market rout, triggered by a sharp pullback in China's major stock market.Neal Ryan, director of economic research at Blanchard and Co, said that he expected gold prices would drift up a little bit on Thursday.
Spot gold was quoted at $668.70/9.45, compared with $669.40/0.10 late Wednesday. Gold was fixed in London at $670.40.
COMEX May silver was up 4.5 cents 14.280 an ounce, trading from $14.165 to $14.465.
Spot silver was quoted at $14.140/4.190, compared with $14.165/4.465 late Wednesday. Silver was fixed in London at $14.290. NYMEX April platinum was down $4.40 at $1,252.00 an ounce. Spot platinum was quoted at $1,244.00/49.00.
NYMEX June palladium edged up 90 cents at $357.50 an ounce. Spot palladium fetched $351.00/56.00.
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