US gold futures dropped on Thursday as the market took a breather after hitting record highs the past two days, but strong investment demand is expected to support prices, traders said. COMEX June gold down $5 at $1,238.10 an ounce at 9:59 am EDT (1359 GMT). Ranged from $1,232.20 to $1,241.
Investors take profits after the metal rallied as much as 4 percent in the past two sessions due to uncertainty that a European rescue will be effective, said traders. Ongoing uncertainty about actual implementation of reforms and impact on economy to support investor interest in gold despite lesser market concerns, said Barclays. Investment demand was strong. The exchange-traded fund SPDR Gold Trust, said holdings rose almost 20 tonnes to a record high 1,209.499 tonnes.
Comex estimated 10 am volume at 75,226 lots. Spot gold at $1,238.45, versus $1,236.35 late in New York's previous session. COMEX July silver down 4.3 cents at $19.620 an ounce, as investors take profits on the coattails of gold. Ranged $19.385 to $19.680. Comex estimated 10 am volume at 15,475 lots. Spot silver at $19.60 versus $19.48 late in prior session.
July platinum down $10.80 at $1,736.50 an ounce on broad-based precious metal weakness. Spot platinum at $1,730.50. June palladium up 5 cents at $547.50 an ounce in mixed trade, as the market looking for a firm direction. Spot palladium at $541.50.
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