US precious metals futures prices were trading firmer in early business on Thursday, with gold inching toward record highs hit at the beginning of February, amid a continuing bullish fundamental backdrop, sources said.
Silver was seen riding on the back of gold's gains, with the benchmark contract hitting a one-month peak, amid ongoing support seen from Wednesday's worker walk-out at the huge Penoles mine in Mexico.
By 10:40 am EST (1540 GMT), gold for April delivery was trading up 0.20 cent at $566.00 an ounce, dealing from $563.70 to $567.80.
Benchmark futures peaked at $579.50 on February 2, before profit-taking pressured prices to a low at $537.80 on February 14. Spot gold rose to $564.30/5.20, from Wednesday's New York close at $563.40/564.30. Thursday's morning fix by London bullion dealers was set at $563.75.
"We have had a pretty good consolidation phase for the past thirty or so days and the fundamentals have not changed at all in that time when the sell-off had occurred. It's been more of an added level of volatility due to geopolitical events," said Emanuel Balarie, senior market strategist with Wisdom Financial.
Benchmark April gold has risen nearly 8.1 percent since the beginning of the year amid safe-haven buying fuelled by geopolitical tensions, dollar weakness, and rising inflation fears due to higher energy prices.
Silver for May delivery was trading 5.5 cents firmer at $9.845 an ounce at the COMEX division of the New York Mercantile Exchange, moving between $9.76 and $9.915, its highest level since February 6.
Spot silver last fetched $9.82/85, against $9.75/78 late Wednesday. The daily spot reference rate was fixed at $9.7875 in London.
NYMEX April platinum gained $2.20 to $1,054 an ounce. Spot last fetched $1,050/1,054. June palladium eased 0.95 cent to $299 an ounce. Spot palladium was quoted $292/296.
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