US gold futures ended lower on Friday as risk aversion receded after the previous session's stock markets rally and as the tone of the global economy improved after the G20 leaders' summit. Gold for June delivery settled down $11.60, or 1.3 percent, at $897.30 on the COMEX division of the New York Mercantile Exchange.
GOLD: Ranged from $911.80 to $895.60. Safe-haven demand faded at least for now, weighing down on gold prices - Bill O'Neill, managing partner of commodities firm LOGIC Advisors.
Gold initially cut losses after US government data showed unemployment rate soared to 8.5 percent in March, the highest since 1983, as employers slashed 663,000 jobs. Planned International Monetary Fund gold sales agreed by the G20 to raise money for low-income countries apply only to the 403 tonnes already approved last year and are not additional - IMF spokesman on Friday.
Renewed talk on IMF gold sales weighing down on gold prices. British Prime Minister Gordon Brown said on Thursday that the G20 countries will ask the IMF to bring forward gold sales to finance help for poorest countries. The IMF last year said it committed to sell 403 tonnes of gold as part of a broader restructuring of its income, but the decision awaits approval from the US Congress.
In the current environment an additional 100 or 200 tonnes of gold sales per annum are almost insignificant compared to changes taking place in investment, jewelry demand and scrap supply - John Reade, UBS' head of precious metals. A Hong Kong-based capital raiser, hoping to buy mining assets at depressed prices, has established a new $1 billion investment fund focused initially on mining companies in Australia and Canada.
COMEX estimated midday electronic volume at 70,793 lots. Floor volume not available due to a technical problem. The gold/oil ratio was at 17.45 versus 17.18 in the prior session. COMEX gold open interest down 7,014 at 358,070 lots as of April 2. Spot gold was at $895.00 an ounce at 1:10 pm EDT (1710 GMT), down 0.9 percent from its last quote in New York late Thursday.= London afternoon fix at $905.00 an ounce.
SILVER COMEX May silver finished down 29.0 cents, or 2.2 percent, at $12.735 an ounce, on profit taking following the previous session's rally. Ranged $12.650 to $12.995. COMEX estimated midday electronic volume at 9,631 lots. Floor volume not available due to a technical problem. Spot silver at $12.73 an ounce, down 1.2 percent from its previous finish. Silver fixed in London at $12.86 an ounce.
PLATINUM: NYMEX July platinum ended up 50 cents at $1,166.30 an ounce as the market took a breather after recent gains based on optimism that US government aid will boost autocatalyst demand. Spot platinum at $1,155.50 an ounce, up 0.2 percent from its previous close.
PALLADIUM: June palladium closed up $2.15 at $224.95 an ounce, tracking platinum's gains. Spot palladium at $219.00 an ounce, down 0.9 percent from its previous finish.