New York gold futures ended sharply higher on Wednesday as crude rallied and after Federal Reserve Chairman Ben Bernanke said the US economy could face a mild recession.
GOLD: June gold settled up $12.40, or 1.4 percent, to $900.20 an ounce after two sessions of heavy losses. Range $885.10 to $904.30. Bernanke's remarks about possible US recession boosted buying for gold as alternative investment.
Sharp gains in crude oil increased gold's appeal as inflation hedge. Gold, which often moves opposite US dollar, fell as dollar rose on strong private-sector ADP US jobs survey and better US factory orders.
Dollar's run lost steam after Bernanke's comments, making gold cheaper for non-US investors. Dollar's failure to stage consistent rally should help stabilise gold: dealers. Comex open interest down 6,448 lots to 399,393 on Tuesday signals long liquidation.
On Tuesday's sharp losses in heavy volume could signal end of liquidation by funds dealers. Comex estimated 1 pm (1700 GMT) volume 114,058 lots, option turnover at 15,692 contracts. Spot gold at $898.00/898.80 at 2:15 pm EDT (1815 GMT), compared with $884.20/885.40 at the close Tuesday. London afternoon gold fix was $890.00 an ounce.
PLATINUM: July closed up $26.80, or 1.4 percent, to $1,964.60 an ounce following a 5 percent decline on Tuesday. Global automakers expressed confidence of rebounding sales after steep decline in March, boosting platinum, which is used in automotive components analyst. South Africa's power crisis may last many years unless electricity demand reduced Eskom. Spot traded at $1,942/1,952.
PALLADIUM: June down $4.85, or 1.1 percent, to $443.75 an ounce. Spot fetched $436/441.
SILVER: May tracked gold to end up 29.0 cents, or 1.7 percent, to $17.180 an ounce, after touching a 9-week bottom of $16.30 on Tuesday. Spot silver at $17.17/17.22 against on Tuesday's late quote at $16.81/16.86. Silver fixed in London at $16.89.
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