New York gold futures jumped nearly 3 percent on Friday, ending at just below $900 an ounce on a combination of record oil and the dollar's drop after a weak US jobs report.
GOLD: The August gold contract on COMEX division of New York Mercantile Exchange settles up $23.50, or 2.7 percent, at $899.00 an ounce. August futures dropped to a session low of $880. They peaked at $903 - the highest level since May 29. US crude futures soar $10.75 to end at record $138.54 a barrel on Friday, bringing gains in the last two days to $15, boosting gold's appeal as a hedge against inflation.
Gold boosted by significant inflation fears as sharp oil gains hamper the Federal Reserve's ability to cut rates - LOGIC Advisors managing partner Bill O'Neill. Gold accelerates gains as dollar falls after data showed the US unemployment rate shot up to its highest level in more than 3-1/2 years.
End-of-week panic buying, geopolitical tensions and nervousness in oil supply cited for gold's gains - FC Stone broker George Nickas. Gold rally, however, could cool off after Friday's sharp gains - Nickas. China's gold output up 8 percent in the first four months of 2008 to 84.039 tonnes - China Gold Association.
Newmont Mining Corp expects to produce 500,000 ounces of gold a year at its new Akyem mine in Ghana once a feasibility permitting stage is completed. South African miner Gold Fields says 1,300 workers at its Beatrix gold mine had called off an illegal strike which affected production.
COMEX estimated final volume at 132,276 lots, options turnover at 8,986 lots. Spot gold at $896.80/898.20 an ounce at 2:15 pm EDT (1815 GMT), compared with $874.55/875.95 in late Thursday trade. The London afternoon gold fix at $890.50.
PLATINUM: July finishes up $68.80, or 3.4 percent, at $2,081.30 an ounce. The head of South Africa's state-owned electricity utility Eskom said the country's electricity grid remains vulnerable going into winter with estimated demand remaining unchanged from last year. Spot platinum quoted at $2,064.00/2,084.00.
PALLADIUM: September palladium closes up $6.40, or 1.5 percent, at $433.80 an ounce. Spot palladium quoted at $429/437.
SILVER: July futures end up 26.0 cents, or 1.5 percent, at $17.430 an ounce. Ranged $17.120 to $17.560. The price of silver will range from $15 to $20 an ounce in the next two years, and investment demand will remain a key driver - Coeur D'Alene Mines Corp CFO. Spot silver at $17.51/17.57 an ounce versus the $17.12/17.18 late quote of Thursday.
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