US gold futures rose in light trade Thursday morning before an early close and Friday's holiday, as the euro hit a record high against the dollar amid split results in several US economic reports. Gold maintained a firm footing above $440 an ounce but was capped by selling and resistance at $445 as traders prepared for the Christmas holiday, floor brokers said.
A trader said a dose of dealer selling seemed to spook the market and prevented the yellow metal from capitalising further on the euro's breakout higher.
"It is a half-day, it is kind of relaxed. Volume has been kind of light and it probably is going to stay that way unless something major happens," the trader said.
By 9:59 am, February delivery gold at the New York Mercantile Exchange's COMEX division climbed $1.10 to $442.50 an ounce, moving from $440.80 to $444.
The euro shot to an all-time high around $1.3483 in light trading conditions, from $1.3460 earlier.
Gold tends to rise on a weaker dollar as the dollar-denominated metal gets cheaper for holders of other currencies.
Analyst Andy Smith of Mitsui Global Precious Metals was cautious in his 2005 forecast issued on Wednesday. Gold should average $390 next year, with a high seen at $465 and a low at $365, he projected.
Spot gold traded to $440.60/1.35, above Wednesday's New York close at $439.20/9.95. Thursday's early fix in London reached $442.40.
Holdings of gold in the US exchange-traded fund streetTRACKS, which is backed by bullion, rose to 91.75 tonnes on Wednesday from 88.64 tonnes a day earlier.
March silver rose 11 cents to $6.945 an ounce, trading $6.835 to $6.955. Spot rose to $6.84/88 from $6.77/80 previously. Thursday's fix was at $6.88. NYMEX January platinum fell $5.70 to $838 an ounce. Spot platinum was quoted $839/843.
March palladium gained 40 cents to $187.40 an ounce. Spot fetched $181/185.
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