US MIDDAY: gold rises

US gold futures rose in choppy trade on Tuesday, rebounding from the previous session's losses as the dollar fell and oil gained, but near-term weakness could continue after bullion failed to break above the $1,000 level last week. August up $2.10 at $954.60 an ounce on the COMEX division at 10:22 am EDT (1422 GMT) of the New York Mercantile Exchange.
Ranged from $948.30 to $964.50. Gold supported by a weaker dollar against the euro, which rose above $1.40, as investors questioned whether the US economy is strong enough to justify higher interest rates by the year end. The dollar decline followed by a sharp rally in the past two sessions, combined with a better tone in the equities market, prompted buying in investments perceived as riskier, including gold, said traders.
Gold prices are due for a continuation of a small correction, and trade will likely to focus on the direction of the stock market, said Tom Pawlicki, precious metals and energy analyst at MF Global. The recent volatility of the gold market has us convinced that the sidelines are a good place to hide, said Dennis Gartman, independent investor and publisher of the Gartman Letter.
COMEX estimated 9 am volume at 36,103 lots. Gold/oil ratio at 13.83, slightly lower than the 13.86 of the previous session. Spot gold traded at $955.90, up 0.6 percent from its previous session. London gold fix at $956 an ounce. July up 23.5 cents, or 1.6 percent, at $15.190 an ounce, tracking gold's gains. Ranged from $14.750 to $15.345. COMEX estimated 9 am.
volume at 11,561 lots. Spot silver was at $15.15 an ounce, up 1.6 percent from its previous finish. London silver fix at $14.930 an ounce. July up $9 at $1,253.00 an ounce, bouncing from the previous session's losses.
Auto demand will continue to be a large part of demand application for platinum group metals, as even hybrid vehicles still require PGM-based catalyst for their gasoline or diesel engines, said UBS Investment Bank. Battery-only vehicles, however, would threaten PGM usage, but cost-effective battery technology remains far short of practical application, added UBS.
The global car industry accounts for 60 percent of total platinum demand for use in automobile catalytic converters. Spot platinum at $1,248.50 an ounce, up 0.5 percent from its previous session. September up $2.75 at $254.75 an ounce, following platinum's rise. Spot palladium was at $251 an ounce, up 1.4 percent from its previous finish.