US gold futures fell but held above $1,000 an ounce on Thursday, as a resurgent dollar dampened bullion's appeal as a hedge against inflation. December gold futures down $3.80 at $1,005.50 an ounce at 10:59 am EDT (1459 GMT) on the COMEX division of the New York Mercantile Exchange. Ranged from $1,002.10 to $1,011.10 - the highest price since September 24.
Gold futures were weighed down by a stronger dollar, after a key US manufacturing index for September came in lower than expected. Weak physical demand from key gold-consuming countries also hurt buying sentiment. Global recession and a high price this year have knocked down demand for gold in Turkey, one of the top consumers of bullion, which is now heading for the lowest ever recorded annual import levels.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust said its holdings stood at 1,095.327 tonnes as of September 30, up 1.22 tonnes from the previous business day. The United States said it held the highest level direct talks with Iran in three decades on Thursday to try to put to rest Western suspicions Tehran is planning a nuclear bomb. Iranian state television said it would hold more talks soon. Gold-to-oil ratio at 14.17, down from the previous session's 14.29.
COMEX estimated 10 am volume at 51,002 lots. Spot gold was at $1,003.90 versus $1,006.70, which was the previous session's late New York quote. December silver up 3.2 cents at $16.690 an ounce on pent-up demand. Ranged from $16.530 to $16.785. COMEX estimated 10 am volume at 11,919 lots.
Spot silver was at $16.65, versus its previous finish of 16.59 an ounce. January platinum down $4.00 at $1,298.90 an ounce, tracking gold's weakness. Spot platinum was at $1,288.50, compared with its previous finish of $1,295.50. December palladium down $4.40 at $294.80 an ounce, tracking platinum's weakness. Spot palladium was at $291, against its previous close of $293.50.