US gold futures rose on Monday, rebounding from last week's sharp losses due to a dollar drop, but prices could be vulnerable to a correction due to high speculative positions. Gold for February delivery up $5.90 at $1,095.60 an ounce at 11:04 am EST (1604 GMT) on the COMEX division of the New York Mercantile Exchange.
Ranged $1,104 to $1,092.20 - the lowest level since December 23. Bullion bounced in tandem with equities markets following broad-based decline from last week as the dollar rose against the euro, said traders. Gold remains in fundamental uptrend due to negative outlook of debt and government deficits, said Martin Murenbeeld at DundeeWealth. Price correction possible as COMEX net-long speculative position remains near record highs, added Murenbeeld.
COMEX estimated 10 am volume at 110,868 contracts. Gold/oil ratio at 14.67 against previous session's 14.64. Spot gold at $1,095.95 an ounce, against the previous session's late quote of $1,091.65. March silver up 13.8 cents at $17.070 an ounce, tracking gold gains. Ranged from $17.275 to $16.99. COMEX estimated 10 am volume at 15,501 lots. Spot silver at $17.08 an ounce, versus the previous session's late quote of $16.96.
NYMEX April platinum up $3.70 at $1,548.20 on bottom-picking after heavy losses last week. ETFS Platinum metals holdings at 164,874 ounces as of January 22, while ETFS Palladium holdings at 279,956 ounces. Spot platinum was at $1,544.50 an ounce. March palladium off 35 cents at $439.75 an ounce on weak market sentiment. Spot palladium was at $439 an ounce.