Gold futures rose above $940 an ounce early Wednesday, recovering the previous session's losses, as a broad decline of the dollar highlighted the status of gold as a hedge against a falling US currency. August up $12, or 1.3 percent, at $939.40 an ounce at 10:34 am EDT (1434 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranging from $943 to $926.10. Dollar-hedge buying increased as the greenback dropped nearly 1 percent against the euro, which rose on improved manufacturing activity data in the eurozone. However, dollar's gains were limited as US private employment figures came in worse than expected. Investors recently viewed the dollar as a safe-haven trade against economic weakness.
Bullion's inflation appeal increased as crude oil rose above $71 a barrel, recovering the previous session's losses. August futures ignored weaker investment demand as the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,120.55 tonnes as of June 30, down 5.19 tonnes from the previous business day.
Weaker buying interest and higher short-term volatilities possible this Canada Day and Friday's holiday observance of US Independence Day on July 4, said traders. COMEX estimated 9 am volume at 37,833 lots. Gold/oil ratio was 13.11 against 13.38 in the previous session Spot gold traded at $938.30 an ounce, up 1.4 percent from its previous session. London gold fix at $938.25 an ounce.
September silver up 18 cents, or 1.3 percent, at $13.780 an ounce, tracking gold's gains. Ranging $13.590 to $13.845. COMEX estimated 9 am volume at 8,165 lots. Spot silver was at $13.77 an ounce, up 1.5 percent from its previous finish. London silver fix at $13.65 an ounce.
October platinum up $17.50, or 1.5 percent, at $1,202.80 an ounce, taking the lead from gold, as investors looked for trading cues from US auto sales data due later today. Spot platinum at $1,193 an ounce, up 1.7 percent from its previous session. September palladium up $1.60 at $252.55 an ounce, tracking platinum. Spot palladium was at $251 an ounce, up 1.2 percent from its previous finish.
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