US gold futures climbed to 2005 highs early Friday, reversing an earlier decline, after a report showed the US trade deficit was wider than expected in January. By 11:14 am (1614 GMT), gold for April delivery at the COMEX division of the New York Mercantile Exchange was up $4 at $447.40 an ounce, which was its loftiest level since December 28. The low was $441.10.
The market chased the euro higher as the dollar fell after government data showed the US trade deficit surged to $58.3 billion in January - the second biggest on record.
Gold has a tight relationship with the greenback, with a weaker US currency tending to boost dollar-denominated metals by making them cheaper for buyers holding foreign currencies.
"After the number this morning, the dollar weakened and we got a rally in metals, but we have seen some profit-taking by investment funds," said a broker-analyst on the COMEX floor.
Andy Brosoff, vice president of precious metals at Mitsubishi International Corp, said profit taking emerged above $445 an ounce after a two-week uptrend in the market.
Spot gold touched $446.65/7.40, up from Thursday's New York close at $442.00/2.75. Friday's London afternoon fix was at $443.70.
May silver rose 2.3 cents to $7.55, moving from $7.43 and $7.58. It hit a three-month peak Wednesday at $7.68, supported by strength in gold and base metal markets.
Spot silver fetched $7.50/53, above the prior close at $7.48/51. The fix was at $7.415.
April platinum lost 50 cents to $869.50 an ounce. Spot platinum hit $867/870.
June palladium fell $2.80 to $201 an ounce, still in retreat from Friday's three-month high at $219. Spot palladium was worth $197/201.
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