US gold futures rose Thursday as jittery investors stirred by bank problems soaked up physical bullion, and the metal continued to outperform other asset classes despite a stronger dollar and falling crude oil. Gold for February delivery gained $9.40, or 1.1 percent, to $859.50 an ounce at 10:36 am EST (1536 GMT) on the COMEX division of the New York Mercantile Exchange.
The range spanned $843.50 to $862.40. Gold market has been in an uptrend ever since worries surfaced over UK and US banks, said Tom Pawlicki, precious metals and energy analyst of MF Global. Sentiment bullish as the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its bullion holdings jumped to a record 805.96 tonnes of gold as of January 21, while Zurich Cantonal Bank's ETF also increased sharply.
Gold futures outperformed crude oil contracts on Thursday. Gold/oil ratio bounced to 20.2, compared with 19.60 in the previous session when the ratio dropped sharply. COMEX estimated 9:00 am volume at 38,372 lots, options turnover at 881 lots. Spot gold was at $860.95 an ounce, up 0.8 percent from the last trade on Wednesday. London afternoon gold fix at $860.00 an ounce.
March silver rose 12.5 cents, or 1.1 percent, to $11.45 an ounce, extending the previous session's gains on the back of broad-based precious metals strength. Ranged $11.205 to $11.485. COMEX estimated 9:00 am volume at 3,531 lots. Spot silver quoted at $11.45 an ounce, up 1.3 percent from its previous session close. Silver fixed in London at $11.32 an ounce.
NYMEX April platinum climbed $6.60 to $934.20 an ounce on bargain hunting, but worries about the health of the auto sector could put a damper on the rise of platinum group metals. Spot platinum quoted at $927.50 an ounce, up 0.4 percent from its last finish. NYMEX March palladium inched up 85 cents to $185.25 an ounce, tracking platinum's slight gains. Spot palladium quoted at $183.00 an ounce, down slightly from its previous close on Wednesday.