US gold futures turned higher on Monday as the dollar extended losses, more than offsetting follow-through weakness and investors' need to raise cash on the back of Dubai's debt woes. COMEX February gold up 80 cents at $1,176.30 an ounce at 10:07 am EST (1507 GMT) on the NYMEX. Ranged from $1,165 to $1,185. Dollar adds losses against the euro as economic optimism supports the equities and commodities markets.
Gold investors initially sell to cover losses after worries about Dubai's debt default pressured equities last week. Dubai, typically a major gold buyer, could unload bullion holdings to opt for cash, and that adds selling pressure to the market, said Miguel Perez-Santalla at Heraeus.
Dubai's debt crisis could be China's opportunity to snap up gold and oil assets, said senior Chinese official. Investor sentiment firm after last week's news that Sri Lanka acquired gold from the IMF, and a report that India is open to buying more IMF gold. Gold-to-oil ratio at 15.40, down from the previous session's 15.44.
COMEX estimated 10 am volume at 111,739 lots. Spot gold at $1,175.50 an ounce, compared with $1,176.70 late in the previous session in New York. March silver up 8 cents at $18.415 an ounce, tracking gold's positive turnaround. Ranged from $18.135 to $18.545. COMEX estimated 10 am volume at 17,684 lots.
Spot silver was at $18.33, against $18.25 in the previous session in New York. January platinum up $9.40 at $1,456.50 an ounce, as better economic sentiment boosts demand for platinum group metals used as autocatalyst. Spot platinum $1,448.50 an ounce. March palladium down $1.10 at $367.45 an ounce on profit-taking. Spot palladium $363 an ounce.