Gold futures turned higher in choppy trade on Wednesday as the dollar moved weaker in a highly volatile session following comments by Treasury Secretary Timothy Geithner on the strength of the US currency. Gold for April delivery rose $8.20 to $932.00 an ounce at 10:49 am EDT (1449 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged between $916.00 and $942.00. April futures accelerated gains as the dollar initially tumbled against the euro on comments by Geithner, saying he was "quite open" to Chinas suggestion of moving toward a currency system linked to a basket of dollars, euros, sterling and yen. April futures fluctuated in a $20 range in less than 30 minutes, tracking sharp currency movements following Geithners comments.
Investment inflows into gold bolstered prices. The worlds largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings gained 10.7 tonnes to 1,124.99 tonnes as of March 24. The gold/oil ratio was at 17.50 on Wednesday, compared with 17.29 in the previous session. COMEX estimated 10 am.
volume at a busy 117,039 lots, options turnover at 6,324 lots. Spot gold was at $932.05 an ounce, up 0.7 percent from its last quote in New York late Tuesday. London morning fix $921.25 an ounce. COMEX May silver was up 8.3 cents at $13.440 an ounce, following a weaker dollar and golds strength. Ranged $12.955 to $13.615. COMEX estimated 10 am volume at 10,406 lots. Spot silver at $13.47 an ounce, up 0.5 percent from its Tuesday finish.
Silver fixed in London at $13.16 an ounce. NYMEX April platinum up $5.30 at $1,123.00 an ounce as investors added position after Tuesdays decline. Spot platinum at $1,113.50 an ounce, down a hair from its previous close. June palladium up $2.10, or 1 percent, at $209.60 an ounce, tracking stronger precious metals. Spot palladium at $206.00 an ounce, up 0.2 percent from its late Tuesday New York quote.