Gold futures rose toward $960 an ounce early on Friday, gaining more than 1 percent as the dollar extended losses against the euro, boosting the metal's appeal as a hedge against the falling US currency. December gold up $12.70, or 1.3 percent, at $954.40 an ounce at 9:46 am EDT (1346 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranging from $939.20 to $959.90. Gold accelerated gains after COMEX pit open as the dollar slumped to a two-week low against the euro on the back of optimistic services-sector data in the eurozone. The inverse relationship between gold and the dollar has been reasserting itself.
Earlier this year, the traditional link broke down because both assets benefited from a flight to safety amid economic fears, said analysts. Investors sold US dollar holdings to buy gold and crude oil, and the December contract looked set to break out and test the next significant resistance level at $975 an ounce, said George Gero, vice president of RBC Capital Markets Global Futures.
Gold/oil ratio at 12.84, down from the previous session's 12.92. COMEX estimated 9 am gold volume at 52,212 lots. Spot gold at $951.85 an ounce, against $939.35 in late Thursday dealings in New York. London afternoon gold fix at $952.50 an ounce. September silver up 23.5 cents, or 1.7 percent, at $14.115 an ounce as investors bought the volatile metal on the back of gold's rally.
Silver has the characteristics of both precious and industrial metals. Ranging from $13.710 to $14.290 an ounce. COMEX estimated 9 am silver volume at 17,111 lots. Spot silver at $14.10 an ounce, versus $13.89 an ounce in Thursday's late business. London silver fixed at $14.010 an ounce.
October platinum up $7.70 at $1,249.70 an ounce as a better performance on Wall Street prompted buying. Platinum is mainly used by the car industry as a key component in catalytic converters. Spot platinum at $1,244 an ounce against $1,236.50. September palladium up $1.60 at $276.85 an ounce, following platinum's gains. Spot palladium at $273.50 an ounce, against its previous finish of $272.
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