COMEX gold surged to a 12-week high Thursday morning as commodity funds continued to buy amid worries about the dollar and recent data suggesting US economic growth may be coming off the boil.
August gold reached $406.00 an ounce to mark its highest price since April 19, shortly after the open. At 9:54 am EDT (1354 GMT), it was up $3.20 at $405.90, extending Wednesdays $9.70 rally after the technical break back above $400 an ounce.
"Its the funds that are back in here," said a chief dealer at a bullion trading firm. "As long as this dollar stays surprisingly weak, I think this is going to continue to be bid."
Gold has been choppy this week, trading down to $389 on Tuesday after skidding from its June 28 high at $405.60, which was only exceeded Thursday. Though a ways off still, April's 15-year peak at $433 is bound to be the next object of market discussion.
Spot gold was quoted at $405.25/406.00, up from the close at $402.00/2.75. Thursday's afternoon fix in London was $405.35.
The September silver contract followed gold to set an 11-week high of $6.385 an ounce. It backtracked to $6.345 to show a gain of 22 cents. It posted an early low of $6.105.
Spot silver fetched $6.30/33, up from $6.10/13 at the end of the previous New York session. The daily fix was $6.20.
NYMEX October platinum was up $14.10 at $805.00 an ounce. Spot fetched $806.00/811.00. September palladium was off 90 cents at $225.00 an ounce. Spot was quoted at $222.00/227.00.