US MIDDAY: gold mainly steady

25 Aug, 2006

US gold futures traded flat on Thursday morning, as investors mostly stayed sidelined amid choppy currency dealings after US and German economic data.
December delivery gold was unchanged at $633 an ounce by 9:47 am EDT on the New York Mercantile Exchange's COMEX division, within a range of $629.30 to $635.50.
"The market's just bouncing around," said a New York dealer. "Gold's been very choppy over the last three days because it's thin, although it's still in a narrow range."
Currencies and energy markets were providing gold direction for the most part in light conditions due to summer vacations, traders said. Estimated turnover by 9 am was a paltry 3,000 contracts. Gold is a classic safe-haven investment in uncertain times. Analysts peg support in COMEX December gold at $615 and $600, with resistance at $650.
"The consistent failure of (bullion) to conquer its 100-day moving average does not bode well ... with a dangerous possibility of extending its short-term weak sentiment towards $620 interim support and $600 stronger support levels," Standard Bank said in a daily note.
Spot gold was worth $622.80/624.30 an ounce, up a touch from Wednesday's late New York quote at $622.25/2.75. Thursday's afternoon fix in London reached $623.75.
COMEX September silver rose 4.5 cents to $12.56 an ounce, in a range of $12.37 to $12.6050.
Previously, silver futures shot to a two-week peak at $12.68 amid ongoing speculative demand for the gray metal, spurred in part by the iShares Silver Trust. Spot silver climbed to $12.51/12.61 from Wednesday's late New York quote at $12.47/49. It fixed higher at $12.58.
NYMEX October platinum fell $1 to $1,235.50 an ounce. Spot platinum slipped to $1,225/1,230. September palladium dipped 35 cents to $346.50 an ounce. Spot palladium rose, however, to $344/349.

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