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US gold and other precious metals continued their day-earlier declines on Wednesday, dragged down by a drop in oil prices and further gains by the dollar against the euro, but trading bands were constrained and support held, traders said. December was down $6.40, or 0.79 percent, at $804.10 an ounce on the COMEX division of the New York Mercantile Exchange.
December fell as low as $793.70, and hit a session high at $813.50 an ounce. COMEX estimated 10 am EDT gold volume at a healthy 73,830 lots. Options turnover was put at 1,427 lots. Declines in crude oil pulled gold prices down as investors continued to unwind their inflation hedges-traders.
December silver was 19.50 cents lower at $12.95 an ounce, a 1.48 percent drop. It set a relatively narrow band with a higher low at $12.63 and a $13.2250 high. Silver slipped with gold and other precious metals. COMEX estimated 10 am volume at 13,789 lots. Spot silver was quoted sharply lower at $13.04/13.10 an ounce, down from $13.58/13.68 at Friday's close. Silver fix lower at $12.79.
October platinum was down $1 at $1,402.50 an ounce. Range between $1,371.10 and $1,421.90. Spot platinum edged down to $1,390.0/1,410.0. December palladium pushed $5.20 lower to $287.85 an ounce along with other precious metals. Spot palladium was quoted down slightly at $282.50/290.50 per ounce.

Copyright Reuters, 2008

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