US gold futures bolted higher but held just below key resistance on Thursday morning, tracking a short-covering bounce in the euro, as the dollar failed to capitalise on news the massive US trade gap narrowed in December, dealers said. Silver, platinum and palladium prices got a boost from gold's gains. April delivery gold at the New York Mercantile Exchange's COMEX division rose $2.50 to $417 an ounce by 10:09 am (1509 GMT), dealing from $413.10 to $417.30 - its highest mark since Tuesday.
Dealers said gold continued to largely follow the euro's moves, with the metal climbing off a prior 4-1/2-month low, but prices still kept to a $412-to-$418 consolidation band.
"The dollar firmed up on the economic data, but then it fell - and gold's euro- and dollar-sensitive," James Quinn, commodities commentator at AG Edwards & Sons, said.
Gold futures hit a 16-1/2-year high near $460 an ounce in early December, boosted by a declining US currency, which makes dollar-denominated gold more affordable for non-US buyers.
Although talk continued to swirl in the market about possible International Monetary Fund gold sales or revaluation down the road, currency moves were seen dominating for now.
Spot gold rose to $415.35/416.10 an ounce from New York's closing level on Wednesday at $412.75/413.50. Bullion hit a one-month low at $410.40 Wednesday. Thursday's afternoon fix in London was at $415.50.
March silver surged 17.0 cents to $6.76 an ounce, dealing between $6.57 and $6.77. Spot silver fetched $6.73/76, above $6.56/59 late on Wednesday. The fix was at $6.5775.
April platinum rose $13.70 to $865 an ounce, rising from a previous one-month low at $847. Spot platinum firmed to $856/861.
March palladium gained $1 to $181 an ounce. Spot edged to $178/182.
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