COMEX gold was consolidating with a slightly bid tone early Friday, enjoying some fund and investment bank interest before the release of an important barometer of US consumer confidence.
The market was reluctant to trade before the University of Michigan released its preliminary September consumer sentiment index mid morning. The index came out at 95.8, below the expected 96.5 and the 95.9 final August reading.
"It's been a tricky week," said a floor broker. "A lot of people are bullish here. There hasn't been any featured sellers. The typical thing, they are always watching the euro, the dollar index and bonds."
December gold started slightly firmer, moved up to show a gain of $2.50 then cut gains after the report. At 9:53 am EDT (1353 GMT) it was up $1.30 at $407.80 an ounce, trading between $405.70 and $409.00.
Traders derived comfort from a soft dollar and a growing confidence that the Federal Reserve will show restraint in raising interest rates, after recent signals it saw little risk of economic overheating.
Spot gold was quoted at $406.25/407.00, up from $404.25/5.00 late Thursday. London's morning fix was $404.60.
COMEX December silver was off 2.8 cents at $6.29 an ounce, trading $6.325 to $6.275. Spot silver fetched $6.25/28, off from $6.27/6.30 last night. The fix was $6.265.
NYMEX October platinum was 70 cents firmer at $843 an ounce. Spot platinum was at $836.00/841.00.
December palladium was 25 cents softer at $211 an ounce. Spot palladium last priced at $206.00/210.00.