US MIDDAY: gold edges up

Light buying lifted US gold futures slightly higher amid low volume early on Thursday, but gold sales by central banks limited further gains as precious metals investors continued to take trading cues from other financial markets.
Bullion held by StreetTRACKS Gold Shares, the world's largest gold exchange-traded fund, surged to a record 506.7 tonnes, from 500.7 tonnes in April, signalling growing interest from both retail and institutional investors.
"We have support at these levels, but we have to get over $680. Every time we get close to $680, we have bank selling, and that kind of puts a damper on the rally," one trader said from the trading floor. At 10:13 am EDT (1413 GMT), most-active gold for December delivery on the COMEX division of the New York Mercantile Exchange was up 30 cents at $676.20 an ounce, dealing between $674.20 and $679.40.
The floor trader in New York said the market should have been trading at higher prices, but December gold failed to rally with the stock market after last week's sell-off.
Jon Nadler, analyst at Kitco Bullion Dealers in Montreal, said in a client note that spot gold drifted higher overnight as global equity markets were stabilising and mild bargain-hunting lent support.
"Trading appears to be confined to the $660 to $670 range, and volumes are on the light side as participants are still scanning the US dollar, crude oil, and stock markets for fresh news to drive bullion out of its current channel," Nadler said.
Spot gold was quoted at $664.70/665.30 an ounce, compared with $664.10/664.90 late Wednesday. The London morning gold fix was $665.35.
In mining news, South Africa's biggest miners' union, the National Union of Mineworkers, said Thursday it would mobilise workers to strike over a wage deadlock with gold producers.
The NUM said the Chamber of Mines, which negotiates on behalf of Harmony, Anglogold Ashanti and Gold Fields, had "refused to budge" and put on the table a 7.75 percent wage offer, while the union was demanding a double-digit increase. COMEX September silver was up 3 cents at $12.985 an ounce, trading between $12.965 and $13.085.
Spot silver was quoted at $12.93/12.97 an ounce, compared with $12.89/12.94 late Wednesday. London silver was fixed at $12.96. NYMEX October platinum was $7.60 higher at $1,298.50 an ounce. Spot platinum fetched $1,287/1,292 an ounce. September palladium dropped $1.20 to $367.10 an ounce. Spot palladium was quoted at $362/370 an ounce.