Gold futures gained on Tuesday, topping $420 an ounce resistance, as the dollar fell and high crude oil prices remained volatile, dealers said.
Silver closed at a one-week high, also helped by dollar weakness versus the euro, and platinum group metals were mixed. December gold rose $4 to $421.60 an ounce on the New York Mercantile Exchange's Comex division, after trading between $416.10 and $422.20.
Final estimated volume was 58,000 contracts. Investors were attracted to gold, as it became cheaper for non-US buyers as the dollar fell, while the recent surge in oil continued to raise inflation fears, said trade sources.
"We saw a big short position in the market cover after we broke back above $419.00/50," said a floor broker. International tensions in front of the US presidential election on November 2 also have helped prop up the market.
Selling by speculative funds and stiff resistance at $425 to $430 in gold capped gains, however, Leonard Kaplan, president of Prospector Asset Management, said in a report, though robust physical demand at lower prices was lending support.
Kaplan said an expected trading range was $408-$420. "I remain bearish, but with targets just slightly below current market prices my immediate target is in the $403-$408 (area) on the downside," he said in a weekly report.
The euro rose to $1.2515 and was trading in sight of Monday's 7-1/2-month high against the dollar at $1.2535. The dollar bounced off its lows after US inflation data came in slightly higher than forecast.
The consumer price index rose by 0.2 percent in September from August, while the core measure, which strips out food and energy prices, rose by 0.3 percent, the biggest jump since April.
Nymex crude oil fell for the second day in a row, with November delivery down 37 cents at $53.30 a barrel. Spot gold changed hands at $420.10/0.60, versus on Monday's New York close at $416.40/7.10.
On Tuesday's afternoon fix in London was at $419.35. December silver jumped 20.8 cents to $7.195 an ounce, after trading from $6.91 to $7.21, which marked its highest since October 12.
Spot rose to $7.16/7.19 from the previous late quote in New York of $6.94/97.
On Tuesday's fix was at $6.96. Major resistance for December silver lurks at $7.34, with support at last on Wednesday's low of $6.80, analysts said. January platinum lost 10 cents to end at $838.90 an ounce.
Spot platinum fetched $835.50/840.50 in late trade. Thinly traded December palladium rose $3.35 to $216.65 an ounce. Spot hit $211.50/217.50.
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