US gold futures fell toward $1,130 an ounce on Thursday, as a stronger dollar amid risk-averse sentiment prompted the bullion market to take a breather after a sharp rally. COMEX December gold down $6.10 at $1,135.10 an ounce at 9:58 am EST (1458 GMT) on the NYMEX. Range spanned from $1,133 to $1,146.50.
Gold pressured by a higher dollar and yen, as declines in equities revived the safe-haven appeal of the US and Japanese currencies. Bullion sold off together with oil and other commodities as Wall Street falls more than 1.5 percent. Options-related buying due to tremendous open interest of $1,200 call options could pull market higher, said traders.
Gold sales in the first year of the third Central Bank Gold Agreement, which began on September 27, have reached only 1.5 tonnes so far, according to World Gold Council. Interest rates may not rise any time soon, even though assets such as gold have streaked to new records, said Bond-fund manager Bill Gross. Gold-to-oil ratio at 14.53, up from the previous session's 14.36. COMEX estimated 9 am volume at 65,684 lots. Spot gold at $1,135.40 an ounce, compared with $1,144.70 late in the previous session in New York.
December silver down 9.5 cents at $18.320 an ounce on gold's drop. Ranged from $18.150 to $18.640. COMEX estimated 9 am volume at 16,247 lots. Spot silver was at $18.32 against $18.54 in the previous session in New York. January platinum down $12.80 at $1,439.20 an ounce as platinum tracks broad-based commodities weakness. Spot platinum $1,432 an ounce. December palladium down $7.50, or 2 percent, at $366.65 an ounce on platinum's weakness. Spot palladium $363.50 an ounce.