US MIDDAY: gold up meekly on speculative buying

13 Jul, 2005

US gold futures nosed higher in quiet trade early Tuesday, propped by speculative buying on the back of a stronger euro against the dollar, but stiff upside resistance barred further gains for now, dealers said.
August gold on the COMEX division of the New York Mercantile Exchange rose 90 cents to $427.20 an ounce by 10:10 am EDT, trading from $426.20 to $428.50.
Dollar weakness on Monday continued into overnight trading during Asian hours, which spurred some fund buying in Tokyo gold futures before New York extended gains with the euro.
"The euro has rallied on short covering and the light speculators just drove gold higher," a trader at a bank said.
US trade figures for May due on Wednesday could give gold and currencies a push, traders said, especially if data comes in far from expectations. Forecasts are for a trade deficit of $57 billion, which is basically flat from the prior month's trade gap.
Spot gold climbed to $426.10/6.80 an ounce, up from Monday's late New York quote at $425.35/5.85. Tuesday's London afternoon fix was at $426.25.
September silver rose 1.5 cents to $7.12 an ounce, dealing from $7.095 to $7.165. Spot silver was flat at $7.07/7.10. It fixed at $7.1025.
On the board at NYMEX, October platinum gained $7.20 at $875 an ounce. Spot platinum reached $871/875.
September palladium slipped 35 cents to $185.40 an ounce. Spot last traded at $181/185.

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