US gold futures turned lower in choppy trade Wednesday despite a dollar drop, extending the previous session's sharp decline as the news of China's tightening bank lending dented market sentiment. Gold for February delivery down $2.40 at $1,127 an ounce at 10:14 am EST (1514 GMT) on the COMEX division of the New York Mercantile Exchange. Range from $1,125.10 to $1,137.30.
Bargain hunting from overseas markets and dollar weakness initially lifted gold prices, said Jon Nadler at Kitco. Concerns over too rapid credit growth in China could help restrain further gold rallies, but monetary policy likely to remain lax enough to put floor on gold prices, said James Steel at HSBC. February contract's 100-day moving average at $1,072 should provide underlying support after futures fell through 50-day average on Tuesday, said analysts.
Gold/oil ratio at 14.19 against previous session's 13.96. COMEX estimated 9 am volume at 81,137 lots. Spot gold at $1,127.55 an ounce, against the previous session's late quote of $1,127.95. March silver up 12 cents at $18.375 an ounce on investment demand.
Range from $18.225 to $18.495. COMEX estimated 9 am volume at 9,482 lots. Spot silver at $18.36 an ounce, versus the previous session's late quote at $18.24 an ounce. NYMEX April platinum down $12 at $1,566.60 an ounce on profit-taking after this week's investment-driven rally.
ETFS Physical Platinum Shares has acquired 80,000 ounces of platinum as of Monday. Spot platinum was at $1,564 an ounce. March palladium down $4 at $421.80 an ounce on platinum's losses. ETFS Physical Palladium Shares has bought 90,000 ounces of platinum as of Monday. Spot palladium was at $417 an ounce.