US gold futures ended lower in quiet trade Friday on a stronger dollar, but bullion will resume its rally, if the metal can continue to thrive as a monetary vehicle during economic turmoil, traders said.
GOLD: Gold for February delivery settled down $4.80 to $879.50 an ounce on the COMEX division of the New York Mercantile Exchange. The range spanned $868.10 to $889.10 an ounce. A Wall Street rally and crude oil's gain lifted gold off its session lows, but February still finished in the red. The Dow rose above 9,000 points, the highest level since December 8.
Profit taking seen after the previous session's rally, prompted by, the dollar's strength. February dropped due to preweekend position squaring amid light volume, and gold's near-term direction depended on interest from funds COMEX gold options floor trader Jonathan Jossen.
Gold's strength in 2009 hinged on whether investors will continue to buy gold as a monetary vehicle, given developing global macro-economic conditions Jossen. Gold posted slight gains in 2008, as the metal was one of the few asset classes to shine in a year bedeviled by fears of a deepening global recession. Strong physical demand seen supporting because of record bullion holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust.
Market talk of a possible cease-fire over the weekend between Israel and Hamas in Gaza lowered gold's appeal as a safe-haven investment in times of geopolitical tension traders. Palestinian Islamists vowed revenge on Israel for killing a senior Hamas leader and his family, and air strikes by Israel continued in Gaza. Spot gold was at $875.10 an ounce at 2:27 pm EST (1927 GMT), down 0.6 percent from the last trade in the previous session.
SILVER: March turned higher to end at $11.49, up 19.5 cents, or 1.7 percent, as a stock market rally bolstered industrial metals such as silver and copper. The range was $11.015 to $11.555. Spot silver was quoted at $11.46 an ounce, up 1.2 percent from its Wednesday's close. Silver was fixed in London at $11.08 an ounce.
PLATINUM: NYMEX April platinum finished up $5.20 to $946.70 an ounce, trading at its highest in nearly three months, helped by better economic outlook following stock's gains. Spot platinum was quoted at $942.00 an ounce, 1.1 percent higher from its last finish.
PALLADIUM: NYMEX March palladium closed up $3.60, or 1.9 percent, to $192.30 an ounce, tracking platinum's gains. Spot palladium was quoted at $189.50 an ounce, up 2.7 percent from its previous close.