US gold futures rose on Tuesday as a weakening US dollar prompted more investors to pile into bullion as a hedge against their dollar-denominated portfolios. August up $6.70 at $986.70 an ounce at 10:53 am EDT (1453 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged from $970.50 to $988.30. Gold buying increased as the dollar extended Monday's losses to hit 2009 lows against the euro and a basket of major currencies. Strong investment flow into gold boosted prices. Bullion holdings in SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, climbed 15.27 tonnes to a record 1,134.03 tonnes as of June 1.
The Vietnamese government said on Tuesday it would allow Vietnamese companies that produce gold abroad to import that gold into Vietnam. COMEX estimated 10 am volume at 43,716 lots Gold/oil ratio at 14.36, slightly higher than the 14.30 of the previous session. Spot gold traded at $984.20 an ounce, up 1 percent from its late Monday quote in New York. London gold fix $980 an ounce.
July futures up 20.5 cents, or 1.3 percent, at $15.940 an ounce, driven by ETF investment demand. Ranged from $15.450 to $16.020. COMEX estimated 10 am volume at 13,857 lots. The holdings of the iShares Silver Trust rose 260.36 tonnes from the previous day to a record 8,608.54 tonnes.
The price of silver will rise further in 2009 following a sharp rally in May, fuelled by a combination of rising investor interest, recovering industrial demand and flat industry output, said Coeur d'Alene Mines Corp. Spot silver was at $15.92 an ounce, up 2.1 percent from its previous finish. London silver fix at $15.62 an ounce. NYMEX July platinum up $20.50, or 1.7 percent, at $1,241.10 an ounce amid economic optimism as US stocks rose further on Tuesday.
Platinum rose in spite of General Motors' bankruptcy filing on Monday, which put the US automaker under government ownership. Spot platinum at $1,234.00 an ounce, up 2.1 percent from its late Monday quote. September palladium up $7.25, or 3 percent, at $251.00 an ounce, tracking platinum's gains. Spot palladium was at $246.00 an ounce, up 3.4 percent from its previous finish.
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