US gold futures turned lower on Wednesday, erasing initial gains, as a dollar bounce and signs of lagging physical jewellery demand prompted investors to take profits. August down $1.80 at $952.90 an ounce at 10:23 am EDT (1423 GMT) on the COMEX division of the New York Mercantile Exchange. Ranged from $950.10 to $966.70.
Initial gold rally fizzled as the dollar turned higher against the euro. Currency traders took profits as the euro rose above $1.41 earlier in the session. The gold and currency markets largely ignored the news that a senior Russian Central Bank official said it would cut the share of US treasuries in its $400 billion reserves. Lack of physical gold demand amid higher price levels took a toll on market sentiment, said traders.
India imported 17.8 tonnes of gold in May, down 39 percent from a year ago, according to Bombay Bullion Association. COMEX estimated 10 am volume at 58,651 lots. Gold/oil ratio at 13.30, lower than the 13.67 of the previous session. Spot gold traded at 951.50, down 0.2 percent from its previous session. London gold fix at $953.75 an ounce. July down 0.5 cent at $15.135 an ounce, tracking gold's weakness. Ranged from $15.075 to $15.500.
COMEX estimated 10 am volume at 19,808 lots. Spot silver was at $15.12 an ounce, down 0.6 percent from its previous finish. London silver fix at $15.390 an ounce. July up $11.10, or 0.9 percent, at $1,269 an ounce, on pent-up buying after recent losses due to uncertain auto sector demand.
The global car industry accounts for 60 percent of total platinum demand for use in automobile catalytic converters. Spot platinum at $1,264 an ounce, up 1.4 percent from its previous session. September up $4.35, or 1.7 percent, at $261.40 an ounce, following platinum's rise. Spot palladium was at $257.50 an ounce, up 2 percent from its previous finish.