COMEX gold sagged early Wednesday but anxiety about extremist attacks held it near recent four-month highs, while trading was minimised before the US employment report on Friday.
Gold shrugged off overnight news that an armed gang had taken hundreds of Russian children hostage, one day after gold got a lift when a suicide bombing killed eight in Moscow and a double bus bombing in Israel killed 16.
At 9:12 am EDT (1312 GMT), December gold was 70 cents easier at $411.70 an ounce, trading from $412.50 to $409.70. Turnover was light as traders looked forward to the upcoming three-day US Labour Day weekend.
On Tuesday, the contract reached $413.30, its highest price in eight days. It topped at $416.80 on August 20 as the dollar fell, geopolitical tensions were heightened by the battle in Najaf, Iraq, and the record run in oil prices was peaking near $50 a barrel.
Plus, investors wanted some gold as risk insurance during the Republican National Convention in New York City. The United States is on heightened terror alert in the run-up to the November elections.
"The market's been very thin through the week. The holiday in London on Monday, our upcoming holiday and a short day on Friday - the last bits of summer," said Paul McLeod, a vice president of bullion dealing at Commerzbank Securities.
Spot gold was quoted at $408.95/9.70, off from $409.65/0.40 late Tuesday. The morning fix in London was $408.00.
December silver, was off 3.7 cents at $6.775 an ounce, trading from $6.82 to $6.745. Spot silver fetched $6.72/75, off from $6.74/77. The fix was at $6.74.
NYMEX October platinum was $1.90 higher at $870.00 an ounce. Spot fetched at $864.00/869.00. December palladium was off $1.50 at $215.00 an ounce. Spot palladium fetched $212.00/217.00.
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