US gold futures rose for a second day early on Tuesday as economic optimism and news that China's biggest sovereign wealth fund held a stake in the metal boosted bullion investor sentiment. COMEX April gold up $9.70 at $1,075.90 an ounce at 10:14 am EST (1514 GMT). Range $1,062.10 to $1,079.80.
Gold boosted by dollar drop, oil rally, rise in global equities markets amid talk of help for debt-burdened Greece. Sentiment bullish after China Investment Corp disclosed it invested in gold ETFs and gold mining shares. CIC has a $155.6 million stake in SPDR Gold Trust, $116 million in a separate gold ETF, and investment in gold miners.
ETF Securities Ltd's plan to start a precious metals basket trust lifts investment demand. Technical buying will emerge if April gold breaks above major chart resistance at $1,075, said traders. Gold's holding support on Friday, and subsequent stability suggest that downward correction could be over, said CitiFX. Gold-to-oil ratio at 14.71, against 14.84 in the previous session.
COMEX estimated 10 am volume at 80,516 contracts. Spot gold at $1,073.85, against $1,062.80 in late New York business in the previous session. March silver up 20 cents, or 1.3 percent, at $15.285 an ounce, tracking gold and other metals' rebound. Range $15.015 to $15.395. COMEX estimated 10 am volume at 18,552 lots. Spot silver at $15.23 an ounce, compared with $14.98 late in the previous session in New York.
April platinum up $14.30 at $1,495.30 an ounce as a global market rally helps industrial metals. ETFS Platinum's holdings unchanged at 264,774 ounces as of February 8; ETFS Palladium's holdings slightly lower at 399,734 ounces. Spot platinum at $1,489 an ounce. March palladium up $8.60, or 2.1 percent, at $416.25 an ounce, taking the lead from platinum. Spot palladium at $413.50 an ounce.
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