Gold futures in New York rose slightly in quiet trade early Wednesday on the dollar fall and higher crude prices, as the bullion market bided time ahead of a key interest rate decision by the US Federal Reserve after the end of the pit session.
"I don't think we are going to see much until the FOMC today. Gold's up a couple of bucks, but there is very, very little activity right now. I think we are just going to wait until this afternoon," said one precious metals dealer in New York.
At 10:17 am EDT (1417 GMT), most-active December gold on the Comex division of the New York Mercantile Exchange was up 80 cents at $788.60 an ounce, trading between $780 and $791.20.
The dollar initially jumped after the robust US productivity report but fell back toward its record low against the euro by midmorning on expectations the Fed will cut interest rates later in the session. Crude oil bounced off early lows to above $91 a barrel as the market awaited key US data on crude inventories and the Fed decision.
News of mine disruptions in South Africa failed to boost prices. Harmony Gold said a closure of one of its biggest mines after an accident in early October would hit second-quarter output and results, and the quarter would also see higher unit costs.
South Africa's Gold Fields said on Wednesday it had ceased blasting at its No 4 shaft at its Kloof mine for the rest of the day after two workers were killed in an accident. In Africa, Barrick Gold Corp said on Tuesday that production at its Bulyanhulu gold mine in Tanzania has been halted due to what it termed an "illegal" strike, and that it has fired about half of the mine's work force.
Spot bullion traded at $785.60/786.10, compared with the Tuesday New York close at $781.25/781.85. London bullion dealers fixed the morning spot reference price at $783.00. Mexico's Penoles, the world's top producer of refined silver, sees prices for the precious metal falling in the medium-term as the global economy slows, Chairman Alberto Bailleres said on Tuesday.
Comex December silver was up 6.2 cents at $14.39 an ounce, trading between $14.18 and $14.47. Spot silver was quoted at $14.32/14.36, higher than Tuesday's late New York quote of $14.18/14.22. London silver was fixed at $14.32. Nymex January platinum climbed $5.10 to $1,446.00 an ounce. Spot platinum was quoted at $1,441/1,445. December palladium inched up 40 cents at $372.20 an ounce. Spot palladium fetched $369/373.