US gold futures hit a 1-month low on Friday after the dollar pared some of its gains against the euro, and as President Barack Obama's proposal to limit risk-taking by banks led to weakness across the board in the commodities markets. Gold for February delivery lost $16, or 1.5 percent, to $1,087.20 an ounce by 10:28 am EST (1528 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged $1,098.50 to $1,181.90, weakest since December 23. Gold futures bounced back after falling toward 100-day moving average at $1,082 an ounce. February could fall to area between $1,025 and $1,040 - the most recent breakout level, if it drops under December lows at $1,075 - Rick Bensignor at Execution LLC. Dennis Gartman said he prefers to own gold in dollar terms instead of other currencies, as dollar's downside risk increased after Obama's proposal. COMEX estimated volume at 149,644 contracts by 10 am.
Gold/oil ratio at 14.49 against previous session's 14.44. Spot gold at $1,085.80 an ounce at 10:33 am EST (1533 GMT), against the previous session's late quote of $1,094.20. March silver lost 61 cents, or 3.5 percent, to $16.90 an ounce, tracking gold fall. Ranged from $17.52 to $16.88. COMEX estimated volume at 25,708 lots by 10 am Spot silver at $16.85 an ounce, versus the previous session's late quote of $17.35.
NYMEX April platinum fell $58.10, or 3.7 percent, to $1,534, on profit-taking after recent rally. Ranged from $1,594 to $1,521.10. Spot platinum was at $1,530.50 an ounce, after touching a low of $1,520, its weakest since January 6. March palladium lost $24.10, or 5.3 percent, at $429.85 an ounce, falling along with sister metal platinum. Spot palladium was at $428 an ounce.