US gold futures tossed back and forth in a small range and finally found its footing at modestly higher levels early on Thursday, after the record US trade gap hit the dollar and helped prop up gold, traders said.
With volumes relatively thin of late, traders said even small moves in either the dollar or crude oil can move gold. "I think people are not as interested because there is not a clear-cut direction," said one trader.
At the COMEX division of the New York Mercantile Exchange, gold for December delivery edged up 50 cents to $577.0 an ounce in a tight trading band between $574.50 to $580.70. "It's pretty quiet, there's not much going on. We moved down earlier on the economic news. And oil is still trading under $58 (per barrel) that's continuing to pressure the market," said a bank dealer in New York.
Gold traders said they see the short-term range remaining roughly between $560 and $580 per ounce. Longer term, they said, $560 to $620 an ounce should hold gold prices. Physical gold buyers have also lent underlying support, though some traders said even that is slowing down.
"You've got the Indian Festival of Lights coming up in a few days and that's probably why Indian demand has been so strong. Physical buying was amazing when we first came off, but now its starting to slow down," said one trader. Spot gold firmed to $575.80/576.80 an ounce from $573.70/4.70 an ounce late in Wednesday's session. London bullion dealers fixed Thursday's reference price at $573.0 an ounce.
December silver firmed by 5.0 cents to $11.38 an ounce and traded from $11.20 and $11.45. Spot silver was quoted at $11.28/11.35 an ounce, up from $11.14/1.21 in late Tuesday dealings. Silver was fixed higher at $11.30. NYMEX January 2007 platinum gained $4.20 to $1,077 an ounce. Spot platinum was quoted at $1,069/1,074. December palladium lost $0.95 to $308.00 an ounce. Spot palladium was quoted higher at $302/307 an ounce.
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