US gold futures finished higher on Wednesday, benefiting from early declines in the dollar, with some analysts citing buying on dips as they said the yellow metal overshot downward in the previous session. COMEX June gold futures finished with $2.0 gains at $1,455.60 an ounce.
Trading band spanned from $1,452 to $1,463.7 an ounce. Gold was helped by a lower dollar earlier against the euro. Gold gained further after the Fed's Beige Book pointed to signs higher raw material and energy costs were adding to price pressures. The US economy continued to improve over the past month on gains in manufacturing, but firms are feeling the effects of higher energy and raw material costs, the Federal Reserve said.
President Barack Obama set a goal of cutting the US budget deficit by $4 trillion, plunging into the debate over the nation's fiscal woes after accusations he has failed to lead on the issue.
Though Obama's steps toward controlling the US deficit were seen as positive for the economy, they were viewed by some gold investors as too theoretical to hurt gold prices at this stage, said Adam Klopfenstein, senior market strategist at Lind-Waldock in Chicago.
Klopfenstein and others said they see more upside for gold, though it may need to correct recent highs for a while before it can carve out a new record. Spot gold was somewhat higher at $1,457.04 an ounce by 2:29 pm EDT (1829 GMT), versus $1,453.95 late Tuesday. Mid-range in the new, higher plateau after reaching a record peak at $1,476.21 on Monday. COMEX May silver closed 17.1 cents stronger at $40.2370 an ounce, lifted with gold. Range extended from $40.0350 to $40.78 an ounce.
Spot silver advanced to $40.44 an ounce in late trade from $40.04 at Tuesday's close. It remained below Monday's 31-year high at $41.93. NYMEX July platinum rose $2.9 to end at $1,777.20 an ounce, firming with other precious metals. Spot platinum was higher at $1,773.50 an ounce, after ending Tuesday's session at $1,765.70 an ounce. NYMEX June palladium lost $4.80 to close at $765.30 an ounce, following other industrial metals down. Spot palladium fetched $763 an ounce in late New York dealings, versus Tuesday's close at $761.40 an ounce.
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