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US gold futures powered to their highest level in more than six weeks on Thursday before easing back a bit, as speculative buying across the metals complex and a de-linking from the US dollar buoyed prices. "There's huge fund buying in gold, both short covering and perhaps new longs," a broker at a futures commission merchant said.
Gold for August delivery was up $3.90 at $434.80 an ounce on the New York Mercantile Exchange's COMEX division, trading from $430 to $436.80, which marked its loftiest level since May 2.
Futures broke above $432 resistance and then briefly spiked above the $435 mark on a wave of stop-loss buying before the market trimmed the rise by midmorning.
However, analysts have pegged a major upside barrier for gold at about $438 in spot and $440/441 in COMEX August futures, before prices can take a run at the high set in late 2004 near $460 an ounce. Chartists put support at $423 and in levels below $420.Euro-priced gold made a record high on Thursday at 357.80 euros before edging back a tad.
Spot gold changed hands at $432.60/3.30 an ounce, above Wednesday's New York close at $428.85/9.60. Thursday's London afternoon fix was $433. July silver gained 6.5 cents to $7.395 an ounce, moving between $7.32 to $7.445. Spot silver reached $7.35/38 an ounce, versus $7.29/32 previously.
It fixed at $7.375. July platinum rose $4.70 to $887.10 an ounce. Spot platinum was quoted at $884/888. September palladium slipped 95 cents to $190 an ounce. Spot hit $187/190.

Copyright Reuters, 2005

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