High energy prices kept Comex gold in favour with investors on Wednesday, but the precious metal lost upward momentum, and just missed its summer highs, after crude oil fell back below $50 a barrel.
But platinum tumbled on the New York Mercantile Exchange after labour stoppages planned for Wednesday were put off at the two largest platinum mining companies. December gold settled up 50 cents at $414.70 an ounce, following a $3.50 gain the previous session.
The contract rose to $416.20, 60 cents from its August 20 high at $416.80, off a low of $412.70.
"In view of the dollar weakness, which has been brought about by the strength of the oil, which consequently will bring at one point an other some inflationary trend, the base refuge is the gold," said a bullion trader.
At the New York Mercantile Exchange, crude was down 0.8 percent at $49.50 a barrel. Spot gold last fetched $412.65/3.40, up from the close at $411.80/2.55. London's afternoon fix was $412.95.
Gold struggled with pop up in the dollar after final second-quarter US gross domestic product was revised up to show 3.3 percent annualised growth, up from last month's preliminary 2.8 percent rate.
"They are watching the oil prices, but with the lack of selling by funds on, I think that's probably giving most of the strength," said Donald Tierney, a broker with Pell Brothers Futures.
The adjustment means the economy expanded at a faster rate than the first quarter's 3.0 percent growth, providing ammunition for the Federal Reserve to stay with a regular tightening course this year.
December silver rose 8.5 cents to $6.695 an ounce, trading from $6.57 to $6.75, it's highest since September 3. Tierney said the contract broke above an important technical downtrend line $6.69, drawn off the bull-market high at $8.48 on April 2, when silver hit its highest level since 1987.
Spot silver closed at $6.65/68, up from $6.57/60 late on Tuesday. On Wednesday's fix was $6.53. October platinum fell $30.50 to $846.50 an ounce, after rallying $17.50 on Tuesday and hitting a six-week high at $884.70. Spot platinum closed at $847/852.
South Africa's National Union of Mineworkers postponed a wage strike at global No 1 producer Angloplat and workers showed up for their shift at second-ranked Implants, alleviating fears of a shortage of the metal, which is primarily used in jewellery and vehicle catalytic converters.
"It was also getting to lofty levels in US dollar terms, and the yen being weak means even nicer prices to sell in terms of yen," said the head of a bullion dealing firm. "It can't go up every day, and when it comes down, sometimes it comes thumping down."
December palladium went down 70 cents to $219.90 an ounce. Spot palladium last traded at $215.00/220.00.