US MIDDAY: gold eases

27 Oct, 2009

US gold futures edged lower in mixed trade on Monday as a flat dollar failed to give the metal a clear direction, and some bullion traders stayed on the sidelines ahead of option expirations. December gold futures down $1 at $1,055.40 an ounce at 10:52 am EDT (1452 GMT) on the COMEX division of the New York Mercantile Exchange.
Range from $1,052.30 to $1,060.80. December scaled a record high $1,072 on October 14. Gold trading could be volatile ahead of COMEX November gold and silver option expirations on Tuesday, according to RBC Capital Markets. Gold eases in tight range as quiet currency market trade fails to give clear direction to the metal.
Dollar weakened slightly as US stocks up nearly 1 percent. Investors favour gold amid worries that global currency depreciation could erode the value of paper assets. Gold weighed down by falling oil, which drops more than 1 percent to just over $80 a barrel.
Gold-to-oil ratio hovers just above 13 at 13.01, down from previous session's 13.14. COMEX estimated 9 am volume at 37,176 lots. Spot gold at $1,054.90 an ounce, against $1,053.95 late in New York in the previous session. December silver down 7.3 cents at 17.650 an ounce on strength of industrial metals. Ranged $17.530 to $17.800.
COMEX estimated 9 am volume at 8,919 lots. Spot silver was at $17.63, versus its previous finish of $17.65 an ounce. January platinum down $2.30 at $1,367.20 an ounce, looking for a definite trading direction. Spot platinum was at $1,357.50, compared with its previous finish of $1,358.50. December palladium down 80 cents at $338.65 an ounce, tracking platinum. Spot palladium was at $334, compared with its previous session close at $333.

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