US gold futures finished Friday at their highest close in four days, but gains were held in check by light volumes and sellers at $1,210 an ounce. Gold will hold current ranges until clearer signs of economic direction emerge, analysts said.
August COMEX gold futures firmed $13.70 to end at $1,209.80 an ounce on the COMEX metals division of the New York Mercantile Exchange. Range ran up to $1,214.10 from a low of $1,194.60 an ounce. Though trading took prices to a brief excursion above $1,210, the upside was capped around that level - traders.
Sellers continued to protect that $1,210-an-ounce resistance area on each attempt to drive prices higher - traders. Noting that the 6-1/2 week low at $1,185 reached on Wednesday held on Thursday and Friday's session when higher highs were attained, prices seem to have stabilised - traders.
A slide below the $1,185 low, which now seems unlikely, could lead to the $1,166 area - technical traders. For now, $1,200 an ounce seems to be the fluctuation point around which gold will continue to trade until there is something offering gold greater direction - analysts.
"I think this market is still bullish. I don't think there is anything even remotely bearish, at all. I think the overall tendency is to look at tangible assets at a time when there's indecision in the marketplace" - Scott Meyers, senior analyst at Pioneer Futures Inc in New York. For now, traders pointed out that the stock market also seems to be consolidating around current levels along with gold - traders.
The Dow and S&P 500 were little changed on Friday as the S&P was headed for its best week so far this year and investors looked ahead to the start of earnings season. "The summer is going to grind its way through. And gold will stay steady regardless of what happens in stocks or the economy. When we get into the fall that will be the telltale time in the world," said Meyers.
COMEX estimated final gold volume at 115,454 lots. Spot gold advanced to $1,209.05 an ounce by 2:38 pm (1838 GMT) from previous session's late quote in New York at $1,196.48 an ounce. London afternoon gold fix set higher at $1,208.75 an ounce. COMEX September silver gained 20.10 cents to finish at $18.0730 an ounce. Range spanned $17.83 to $18.2350 an ounce. Silver trailed gold's moves.
COMEX estimated final silver volume at 16,758 lots. Spot silver at $18.08 an ounce was higher than $17.89 late in the previous session. London silver fix was set lower at $17.87 per ounce. NYMEX October platinum adds $16.80 to settle at $1,533.20 an ounce. Spot platinum quoted at $1,529.50 an ounce, up from the previous late bid at $1,517 an ounce in late Thursday business. September palladium advances $12.55 to close at $456.95 an ounce. Spot palladium at $455 an ounce was higher than $445.50 an ounce at the previous close.
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