US gold futures extended a rally to record highs for a second consecutive day on Wednesday, after a frustrating private-sector employment report boosted expectations that the Federal Reserve will pump more funds into the economy. COMEX December gold futures settled up $7.40 at $1,347.70 an ounce on the COMEX division of the NYMEX. Range ran from $1,340 to $1,351 - a record high.
Weak ADP report adds to the general economic anxiety, increasing expectations of US monetary easing, which benefits gold, said James Steel at HSBC. COMEX gold open interest rose, near last week's record at 619,408 lots, and the exchange estimated gold volume at 122,000 lots, 1.5 percent above its 30-day average, preliminary Reuters data showed.
By 3:08 pm EDT (1908 GMT), spot gold rose 0.6 percent to $1,346.90.
COMEX December silver ended up 30.6 cents, or 1.4 percent, at $23.043 an ounce, as the white metal kept outperforming gold. Ranged from $22.760 to $23.185 an ounce. COMEX estimated volume at 49,000 lots, about 18 percent higher than the 30-day average - preliminary Reuters data. Spot silver was trading up 1.6 percent at $23.15 an ounce.
NYMEX January platinum finishes up $11.30 at $1,712 an ounce as strong Chinese auto demand and palladium's rally boosted the autocatalyst metal, said traders. Spot platinum gained 1.1 percent to $1,713 an ounce. NYMEX December palladium closed up $11.45, or 2 percent, at $589.65 an ounce, as signs of strong auto demand from emerging economic powers such as China boosted investor buying. Spot palladium was trading up 1.8 percent at $585 an ounce.
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