US gold futures climbed and held near session highs early Wednesday after a report showing the US current account deficit flared to a record level at the end of 2004, pressuring the dollar, dealers said. In other precious metals, platinum hit a six-week high after fund buying emerged at lower prices, while palladium and silver also posted gains.
By 9:48 am (1448 GMT) gold for April delivery at the COMEX division of the New York Mercantile Exchange was up $3 at $444.40 an ounce, trading from $440.60 and $444.50.
"The economic data didn't do much to strengthen the dollar, and gold is firmer off that," said James Quinn, an AG Edwards & Sons commodities commentator.
Futures zipped back to near their highs for the year with the dollar's fall against rival currencies, but gold still held below Friday's peak at $448, as the market consolidated gains.
Chartists traced first key resistance in April gold futures to $449, with support at $441 to $438.
April gold soared to a 16-1/2-year peak at $460.50 an ounce back on December 2.
"The market may have gotten ahead of itself, but there are still many bulls, and at the drop of a hat you could see some hedge funds come back in here and they could take this higher," said Quinn.
Spot gold was worth $443.20/3.90, up from Tuesday's New York closing quote at $440.25/1.00. Wednesday's afternoon fix in London was at $443.
Traders said the euro's rise and scattered fund buying supported the other precious metals.
April platinum advanced $5.20 to $882 an ounce, trading at its highest since February 1. Spot platinum was at $881/885.
June palladium gained $3.05 to $206 an ounce. Spot palladium reached $202/206. May silver rose 4.3 cents to $7.45 an ounce, trading from $7.395 to $7.485. Spot silver fetched $7.39/42, compared with $7.36/39 previously. It fixed at $7.41.
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