US gold futures jumped on Friday, closing above $1,000 an ounce as a weaker dollar and inflation fears stirred demand among investors who view bullion as a safe haven amid economic uncertainties.
GOLD: December gold settled up $9.60, or 1 percent, at $1,006.40 an ounce on the COMEX division of the New York Mercantile Exchange. Ranged from $996.30 to $1,013.70, the highest level since February 20. Friday's settlement marked the first time gold clearly closed above $1,000 an ounce. The last two times gold rallied above that level, there were swift price corrections.
The US dollar fell to a one-year low against major currencies as optimism about the global economic outlook encouraged investors to favour higher yielding currencies and stocks instead of the safety of the greenback. Technical buying, a stronger euro and a crude oil rally boosted gold - George Gero, vice president of RBC Capital Markets Global Futures.
COMEX gold open interest continues to expand, signalling strong investment demand from funds - Gero. Current run-up in gold lacks participation of individual buyers compared to the February's rally, and that makes bullion vulnerable to a sharp pullback. Gold price, however, should average at higher prices for the next 6-7 months - Jeffrey Christian, managing director of CPM Group.
COMEX estimated final volume at 131,217 lots. Gold/oil ratio at 14.53, down from the previous session's 13.89. Spot gold at $1,005.70 an ounce at 3:54 pm EDT (1954 GMT), against $995.50 in the previous session in New York. London afternoon gold fix was at $1,008.25 an ounce.
SILVER: December silver broke above $17 an ounce earlier in the session. It ended up 3 cents at $16.700 an ounce on strong investment demand. Silver futures recently have outperformed gold, helped by better economic sentiment. Usually less-liquid silver has the characteristics of both precious and industrial metals. Ranged from $16.645 to $17.015 an ounce. COMEX estimated final volume at 25,538 lots. Spot silver at $16.77 an ounce, versus its previous close of $16.68. London silver fix was at $16.89 an ounce.
PLATINUM: October platinum finished up $31, or 2.4 percent, at $1,320.70 an ounce as signs of economic recovery helped platinum's appeal as both an industrial and precious metal. Spot platinum at $1,316 an ounce against $1,284.
PALLADIUM: December palladium closed up $1.05 at $294.50 an ounce, tracking platinum. Spot palladium at $290 an ounce, against its previous finish of $288.50.
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