US MIDDAY: gold higher

13 Jan, 2010

US gold futures turned higher early on Tuesday as the dollar declined against a basket of currencies, which more than offset technical weakness in the metal. Gold for February delivery up $2.20 at $1,153.60 an ounce at 10:26 am EST (1526 GMT) on the COMEX division of the New York Mercantile Exchange.
Range from $1,144.30 to $1,158.30. Gold cut initial losses as the dollar turned lower against the euro and a basket of six major currencies. Monday's close was disappointing technically, but prices should maintain upward bias beyond a possible correction in the next day or two, said Tom Pawlicki at MF Global.
February contract's 50-day moving average near $1,128 should provide underlying support, said analysts. Gold/oil ratio at 14.13 against previous session's 13.99. COMEX estimated 10 am volume at 110,329 lots. Spot gold at $1,151.65 an ounce, against the previous session's late quote of $1,151.10. March silver down 12 cents at $18.575 an ounce on profit-taking following Monday's gains. Range from $18.365 to $18.810. COMEX estimated 10 am volume at 19,891 lots.
Spot silver at $18.53 an ounce, versus the previous session's late quote at $18.55 an ounce. NYMEX April platinum up $8.50 at $1,601 an ounce on strong investor demand related to Friday's launch of exchange-traded funds. Spot platinum was at $1,598 an ounce. March palladium up $4.65, or 1.1 percent, at $436.60 an ounce on positive investor sentiment. Spot palladium was at $433.50 an ounce.

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