US MIDDAY: gold bounces back on fund, speculative selling

17 Aug, 2005

Gold futures in New York rose to settle near session highs on Tuesday, after buyers jumped in on an earlier dip in prices and a lacklustre dollar and historically high crude also gave it a boost, analysts said.
In other precious metals, platinum ended at a 2-1/2-week low below $900 on fund and speculative selling. Industrial precious metal silver popped back above $7.00 an ounce, thanks to copper prices hitting fresh record highs in the session.
December delivery gold on the New York Mercantile Exchange finished at $451.50 an ounce, up $3.90 on the day, after dealing between $445.70 and $453.
Bargain hunting helped gold bounce from the $445 support area in morning trade before it extended gains as a lacklustre dollar backed off its highs later in the day.
Traders also said buying out of the Middle East has helped to prop gold during a slow period typical of the late summer.
Resistance in COMEX December gold was pegged at Friday's eight-month high of $455.30, and then at around $460, followed by $471, with support seen down at $445 and $442.90. After declining overnight, spot gold rose to $446.10/446.90 an ounce, above Monday's late New York quote at $441.70/442.50. The afternoon fix in London reached $443.
COMEX September silver climbed 7.8 cents to end at $7.043 an ounce, in a range of $6.955 to $7.055. Spot hit $7.03/06, from $6.94/97 Monday. It fixed at $6.98.
In the NYMEX metals, October platinum fell $12.50 to $892.70 an ounce. Spot platinum traded at $889/893. September palladium slipped $1.20 to close at $185.05 an ounce. Spot edged to $182/186.

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