US MIDDAY: gold snaps back on heavy fund selling

Gold in New York bounced from a six-week low on Wednesday, as metals and currency traders took a cue from a firmer euro against the dollar and after two days of heavy fund selling in gold dried up, dealers said.
Prices looked set to consolidate for a time, after sinking below $460 this week from $475 on Friday on speculative liquidation and before a much-anticipated hike in US interest rates on Tuesday, said trading sources.
"Gold's seeing a little rebound with the euro," one New York trader at a precious metals refiner said. "It looks for now that the liquidation has stopped and we have to see if we're going to find some physical interest around here.
"There was some good buying yesterday on the physical side, but we have to see if it goes on at these price levels."
Benchmark December delivery gold on the New York Mercantile Exchange's COMEX division gained $4.10, or 0.9 percent, to $464.80 an ounce by 10:55 am EST, patrolling a range of $460.20 to $465.10.
Gold mirrored the euro's rise as the spread between the eurozone currency and the dollar tightened before the European Central Bank's monthly policy setting meeting on Thursday.
After Tuesday's market close, the Federal Reserve took the benchmark rate to 4 percent, increasing the yield attraction for the US currency. That normally pressures gold because investors sometimes turn to the metal as a dollar alternative.
No ECB rate hike was expected, although it and also the US Fed are expected to increase rates next month.
December gold hit an 18-year high at $483.10 in October.
Spot gold rose to $460.90/461.70 an ounce, versus Tuesday's New York close at $459.50/0.25. Wednesday's afternoon fix by London bullion dealers was at $460.80.
December silver was up 7.0 cents at $7.54 an ounce and above Tuesday's one-month low, dealing from $7.43-7.55. Spot silver inched up to $7.48/51, from $7.43/46 previously. It fixed at $7.42.
NYMEX January platinum rose $6.60 to $935 an ounce. Spot platinum reached $930/934. December palladium was up $4.10 at $227.50 an ounce. Spot palladium traded at $221/225.