US gold futures rose early Friday and settled above $650 an ounce in thin, choppy trade as currency moves and a security scare at the US Capitol in Washington dominated dealings before a long holiday weekend.
Dealers said they saw a blend of book squaring, early end-of-month profit-taking and a bit of safe-haven and broker buying in the shortened trading session on the COMEX division of the New York Mercantile Exchange.
"It was all fund action in a news-driven day," said Leonard Kaplan, president of Prospector Asset Management in Evanston, Illinois.
COMEX June delivery gold climbed $2.50 to $651 an ounce, after zigzagging between $640.50 and $655.70. August, the next active contract, rose the same amount to $657.40.
"Gold opened higher, and then we came down hard because the dollar started to rally sharply," Kaplan said.
Police re-opened the Capitol building after a second brief lockdown following a security incident at the nearby House of Representatives Rayburn building, officials said.
Authorities were investigating a report of gunfire in the garage of the Rayburn building, which remained closed to people entering or leaving by midafternoon. Gold prices have surged in recent years on economic uncertainty and geopolitical concerns. The market has risen 26 percent this year and 48 percent since the start of 2005.
Investors were asking how much longer the bull run that began years ago would last, after the rollercoaster ride in commodities over the past fortnight.
Estimated COMEX gold final volume was 100,000 contracts, swollen by 21,733 switches related to June-into-August contract rollover ahead of June metal delivery next week. Spot gold firmed to $650.80/651.60 an ounce, versus New York's last close at $649.80/650.60. Friday's afternoon bullion fix in London reached $642.25.
In silver, COMEX July futures climbed 13 cents to $12.73 an ounce, trading from $12.42 to $12.74. Futures shot to a 25-year high of $15.20 on May 11.
Spot silver reached $12.68/12.78 an ounce, versus $12.66/12.76 at its last close. Friday's fix was at $12.70.
Over at NYMEX, July platinum gained $3.10 to finish at $1,298.10 an ounce, still below last week's record of $1,347. Spot platinum fetched $1,292/1,300 an ounce. June palladium likewise rose $3.10 at $355.10 an ounce. Next active September was up $3.30 at $360.55. Spot was quoted at $352/358 an ounce.
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