US gold futures rose toward $1,150 an ounce on midday trade on Wednesday, reversing early weakness as a sliding dollar more than offset outflows at the world's largest gold-backed exchange-traded fund. COMEX February gold up $2.30 at $1,145.70 an ounce at 10:58 am EST (1558 GMT) on the NYMEX.
Ranging from $1,148.40 and $1,126.50 - near a three-week low. Gold futures on track to rebound after falling for the past three sessions. Bullion initially failed to rebound despite a dollar drop. Sovereign credit worries have not lifted gold, signalling that the weak dollar drove last week's rally, said Commerzbank.
Currency movements should be key to gold's short-term direction given near record COMEX speculative positions - Barclays Capital. Bullion holdings in SPDR Gold Trust dropped nearly 14 tonnes or 1.2 percent, the largest one-day redemption since July. Movements in gold ETFs could indicate near-term direction for gold prices, said dealers. Gold-to-oil ratio at 15.66, up from the previous session's 15.59.
Spot gold at $1,143.15 an ounce, against the previous session in New York at $1,129.30. COMEX estimated 10 am volume at 121,450 lots. March silver up 5.30 cents at $17.860 an ounce, tracking gold's positive turnaround. Ranging from $17.91 to $17.49. COMEX estimated 10 am volume at 17,802 lots. Spot silver was at $17.80, against $17.59 in the previous session in New York.
January platinum down $3.30 at $1,437.10 an ounce as economic news fails to give the platinum group metals market a firm direction. Spot platinum at $1,424.50 an ounce. March palladium down $4.85, or 1.3 percent, $370.50 an ounce, taking the lead from platinum. Spot palladium at $365 an ounce.