US gold futures rose to a one-month high early on Friday as a down dollar, stronger energy markets and geopolitical tensions pushed prices toward key technical levels, traders said. "Again, the dollar is getting smoked, forcing some short-covering in the market," said Neal Greenberg, precious metals trader with RBC Proprietary Trading in Red Bank, New Jersey.
"We're getting close to some technical levels near $840 (an ounce). I think if it breaks out past $847, convincingly, you're going to see a straight B-line toward $887," he said.
Most-active gold futures for February were up $5.00 at $836.80 an ounce by 9:25 am EST (1425 GMT) on the Comex metals division of the New York Mercantile Exchange, moving between $828.30 and $838.40 which marked their loftiest level since November 26.
Gold volumes were estimated at 19,308 lots by 9:00 am. In the physical bullion market, the price of spot gold climbed to $834.15 which was its highest since November 26, and was trading last at $832.80/833.50 by 9:25 am against a late Wednesday quote in New York of $824.70/825.50.
"With the dollar under pressure and violent protests seen in Pakistan, it is likely that gold could see further safe-haven investment demand, and potentially rise to challenge this year's high," said James Moore, metals analyst at TheBullionDesk.com.
Gold, often considered a safe-haven play during times of global political tension, rose Thursday after Pakistani opposition leader Benazir Bhutto was killed in a gun and bomb attack as she left a political rally. The assassination has put the country's election on January 8 in doubt.
Comex silver for March delivery firmed on the back of the advance in gold, trading up 14.70 cents to $14.965 an ounce. The contract was holding near the upper end of its $14.730-$14.990 morning trading band. Spot silver was last at $14.81/14.86 compared with the late Wednesday quote of $14.58/$14.63.
Comex platinum for January was off $6.80 to $1,532 an ounce, as the market continued to backpedal from Wednesday's all-time high of $1,551.50. Spot platinum was quoted at $1,532/$1,536. Platinum prices have rallied nearly 40 percent on the year amid a tight physical market due to lower output from top producer South Africa. Comex palladium for March fell $2.35 to $366 an ounce. Spot palladium fetched $363/367.