US gold futures rose to hit a record high at above $1,240 an ounce early on Wednesday as economic uncertainties and Greece's debt contagion fears prompted investors to pile into the metal for safety. COMEX June gold up $19, or 1.6 percent, at $1,239.30 an ounce at 9:34 am EDT (1334 GMT).
Ranged from $1,227.20 to $1,245.40 - an all-time high. Despite abating sovereign risks, gold's rally largely driven by worries about "exit strategy" for central banks after ECB's rescue plan, said Michael Jansen at J.P. Morgan. Doubts about the long-term viability of the euro and paper currencies trigger a flight into gold, said traders. Investment demand was strong. The exchange-traded fund SPDR Gold Trust, said holdings stood at a record high 1,192.150 tonnes. Comex estimated 9 am volume at 88,676 lots.
Spot gold at $1,239.65, versus $1,232.05 late in New York's previous session. COMEX July silver up 29.6 cents, or 1.5 percent, at $19.590 an ounce, as short-term momentum traders pile in on the coattails of gold. Ranged $19.110 to $19.665 - highest since 2008. Comex estimated 9 am volume at 18,882 lots. Spot silver at $19.57 versus $19.28 late in prior session.
July platinum up $14.10 at $1,714.90 an ounce as gold's rally boosts platinum's appeal as a precious metal. Spot platinum at $1,709.50. June palladium up $12.30, or 2.3 percent, at $544.50 an ounce, taking the lead from platinum. Spot palladium at $541.50.
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