US MIDDAY: gold falls

11 Sep, 2009

US gold futures fell early on Thursday as investors took profits, but the metal retraced initial lows as the dollar weakened, increasing bullion's appeal as a currency hedge. December gold down $1 at $996.10 an ounce at 11:09 am EDT (1509 GMT) on the COMEX division of the New York Mercantile Exchange. Ranging from $983.20 to $998.50.
Profit-taking seen in gold on follow-through selling as prices failed to stay above $1,000 an ounce on Wednesday, and stop-loss orders amid uncertainties also pressured, said George Gero, vice president of RBC Capital Markets Global Futures. Output decrease from top producer South Africa limited losses. South African gold output fell 7.6 percent in volume terms in July compared with the same month in the previous year, according to the official data.
COMEX estimated 9 am volume at 61,671 lots. Gold/oil ratio at 13.84, down from the previous session's 13.89. Spot gold at $992.50 an ounce, against $991.15 in the previous session in New York. London afternoon gold fix was at $990.75 an ounce. December silver up 3.5 cents at $16.505 an ounce on strong investment demand. Ranged from $16.060 to $16.590 an ounce. COMEX estimated 9 am volume at 14,159 lots.
Spot silver at $16.44 an ounce, versus its previous close of $16.27. London silver fix was at $16.09 an ounce. October platinum down 40 cents at $1,291 an ounce on profit-taking after recent precious metals rally. Spot platinum at $1,282 an ounce against $1,276. December palladium down 55 cents at $294.50 an ounce, tracking platinum. Spot palladium at $290 an ounce, against its previous finish of $290.50.

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