US MIDDAY: gold rebounds

09 Feb, 2010

US gold futures rose 1 percent on Monday, boosted by a dollar drop and short-covering after the metal fell to a three-month low in the previous session. April up $13, or 1.2 percent, at $1,065.80 an ounce at 9:50 am EST (1450 GMT) on COMEX division of NYMEX. Range $1,061.80 to $1,074.30.
Gold supported by a lower dollar index and steadier euro. A dollar rally against the euro amid risk aversion sent gold prices down 2 percent last week. Busy buying helped by short covering seen early in session, said George Gero at RBC. Heavy new buying may not appear until April breaks above $1,125 on the upside, added Gero. Gold-to-oil ratio at 14.95, against 14.86 in the previous session. COMEX estimated 9 am volume at 63,707 contracts.
Spot gold at $1,063.75, against $1,065.55 in late New York business in the previous session. March silver up 23 cents, or 1.6 percent, at $15.06 an ounce, tracking gold and other metals' rebound. Range $14.950 to $15.320. COMEX estimated 9 am volume at 17,781 lots. Spot silver at $15.01 an ounce, compared with $15.11 late in the previous session in New York.
April platinum up $2.30 at $1,477.40 an ounce on short-covering and better economic sentiment. Spot platinum at $1,473.50 an ounce. March palladium up $6.25, or 1.6 percent, at $404.50 an ounce, taking the lead from platinum. Spot palladium at $400 an ounce.

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