New York gold futures jumped above $900 an ounce on Thursday, trading at a three-week high on a combination of stronger trade buying, a lower dollar and weaker tone in US stock markets. Gold for June delivery rose $15.60, or 1.7 percent, at $908.10 an ounce at 11:23 am EDT (1623 GMT) on the COMEX division of New York Mercantile Exchange.
Ranged from $890.50 to $910.40 - which marked its highest price since April 3. June futures climbed above $900 on a weaker dollar versus the euro and as falling US stocks prompted investors to turn to precious metals, said traders. Gold futures boosted by better interest by banks and commission houses in out-of-money longer-dated call options, said Jonathan Jossen, COMEX gold options floor trader.
Gold jewellery demand boosted by India's higher imports in April and Akshaya Tritya, a gold-buying festival. Gold/oil ratio at 18.6 on Thursday, compared with 18.3 in the previous session. COMEX estimated 10 am electronic futures volume at 39,452 lots. Floor volume was not available due to a technical glitch. Spot gold traded at $906.00 an ounce, up 1.9 percent from its late Wednesday quote in New York.
COMEX May silver gained 45.0 cents, or 3.7 percent, to $12.755 an ounce, adding to its previous session's gains following gold's rally. Ranged between $12.280 and $12.860. COMEX estimated 10 am electronic futures volume at 7,560 lots. Spot silver was at $12.76 an ounce, up 3.9 percent from its previous finish. NYMEX July platinum rose $3.80 to $1,182.50 an ounce on broad-based strength of precious metals in spite of a weaker stock market.
Platinum and palladium will take little support from their fundamental drivers in 2009 as industrial demand stays weak, but a rally in gold could spark a temporary uptick in prices, according to metals consultancy GFMS. Spot platinum at $1,174.50 an ounce, up 0.5 percent from its late Wednesday quote. June palladium edged down 50 cents at $232.80 an ounce. Spot palladium was at $229.50 an ounce, down 0.2 percent from its previous finish.