US gold futures jumped more than 2 percent early on Tuesday as huge losses of UK banks reignited worries about a deepening global economic crisis, bolstering gold's status as a safe haven. Gold for February delivery rose $18.60, or 2.2 percent, to $858.50 an ounce at 10:42 am EST (1542 GMT) on the COMEX division of the New York Mercantile Exchange.
The range spanned $823.60 to $861.40, which marked the highest since January 9. Average price of gold jumped 25 percent to $871.90 in the fourth quarter of last year on safe-haven buying as stocks and other commodities fell sharply - World Gold Council. Record bullion holdings in SPDR Gold Shares improved buying sentiment. Gold holdings in the world's largest gold exchange-traded fund held at a record 795.25 tonnes.
Gold futures outperformed crude oil contracts on Friday. Gold/oil ratio was at 23.3, compared with 23.40 in the previous session. COMEX estimated 9:00 am volume at 94,082 lots, options turnover at 854 lots. Spot gold was at $858.95 an ounce, up 2.9 percent from the last trade on Friday.
March silver climbed 13.0 cents, or 1.1 percent, to $11.345 an ounce on the back of gold's strength. Ranged $10.920 to $11.405. COMEX estimated 9:00 am volume at 8,672 lots. Spot silver quoted at $11.30 an ounce, up 1.7 percent from its previous session close. Silver fixed in London at $11.32 an ounce.
NYMEX April platinum turned 70 cents higher to $954.00 an ounce in mixed trade, but economic worries kept industrial metals such as copper and platinum from rising further. Spot platinum quoted at $945.50 an ounce, down 0.3 percent from its last finish. NYMEX March palladium eased 95 cents to $185.00 an ounce, tracking platinum's gains. Spot palladium quoted at $181.50 an ounce, 0.8 percent lower than its previous close on Friday.