A weaker dollar versus the euro drove gold futures in New York sharply higher in busy trade early on Tuesday, but falling crude oil prices kept bullion from rising further. A one-day national strike in South Africa, a top producer of platinum and gold, over miners' safety also boosted metal prices by stirring supply worries.
At 10:41 am EST (1541 GMT), most-active February gold on the Comex division of the Nymex was up $8.30 at $803.00 an ounce, trading between $792.60 and $806.70. Jonathan Jossen, an independent Comex floor trader in New York, said "I think gold's on its own right now. We have to go above $806.30 to rise further, that's the big number".
Bullion holdings used to back StreetTRACKS Gold Shares, the world's largest gold ETF accounting for more than 80 percent of all such funds, were at 601.65 tonnes on Tuesday, after setting a record 609.33 tonnes last week.
The euro was up about 0.5 percent against the dollar on Tuesday. A lower dollar makes gold, which is denominated in the US currency, cheaper for investors holding other currencies. Gold is also seen as an alternative to owning the greenback.
Gold is used by investors as a hedge against oil-led inflation. Spot gold was quoted at $796.30/797.00 an ounce, compared with $790.10/790.80 in New York Monday afternoon. London bullion dealers fixed the afternoon spot reference price at $797.50.
Nymex January platinum was up $3.60 at $1,465.00 an ounce, on top of Monday's solid gains. Spot platinum was quoted at $1,461/1,466. March palladium eased $1.15 to $350.50 an ounce. Spot palladium fetched $346/349.
Comex March silver jumped 22.00 cents or 1.6 percent to $14.430 an ounce, trading between $14.185 and $14.500. Spot silver was quoted at $14.24/14.29 an ounce, compared with $14.09/14.14 late Monday in New York. London silver was fixed at $14.250.
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