US gold futures turned higher early on Thursday, supported by a combination of a weakened dollar, inflation concerns and background support from simmering geopolitical tensions. Gold for June delivery up $4.10 at $957.40 an ounce at 10:25 am EDT (1425 GMT) on the COMEX division of the New York Mercantile Exchange. Ranged from $944 to $961.10.
Gold supported as the dollar fell against the euro, as better-than-expected US durable goods orders and weekly jobless claims boosted risk appetite, said forex traders. Inflation concerns also stirred buying into the yellow metal after US crude futures rose above $64 per barrel as Opec kept its output unchanged.
Gold continued to look expensive relative to agricultural commodities, and a high bullish consensus figure was worrisome to gold bulls, said Dennis Gartman, independent director and the author of the daily "Gartman Letter." Contract rollover to August futures continued at a good pace ahead of first notice day of June contracts on Friday, said traders.
COMEX gold market open interest neared the 400,000 mark, indicating investment buying by funds and institutions, said analysts. COMEX estimated 10 am volume at 91,686 lots. Gold/oil ratio at 15, lower than the 15.02 of the previous session. Spot gold traded at $956.60 an ounce, up 0.9 percent from its late Wednesday quote in New York. London gold fix $957.75 an ounce.
Silver futures, which are less liquid than gold, rose to a nine-month high above $15 an ounce, driven by strong investment buying, said traders. COMEX July silver up 22.50 cents, or 1.5 percent, at $15.090 an ounce. Ranged from $14.650 to $15.195, which marked the highest price since August 14. COMEX estimated 10 am volume at 11,201 lots. Spot silver was at $15.06 an ounce, up 2.3 percent from its previous finish. London silver fix at $14.88 an ounce.
NYMEX July platinum down $6.20 at $1,134.90 an ounce as the market focused on lacklustre auto industry demand. Spot platinum at $1,129.50 an ounce, down 0.2 percent from its late Wednesday quote. June palladium down $1.85 at $224.70 an ounce, tracking platinum. Spot palladium was at $222.50 an ounce, up 0.2 percent from its previous finish.