US MIDDAY: gold drops

11 Feb, 2010

US gold futures retreated below $1,070 an ounce early on Wednesday, as Federal Reserve Chairman Ben Bernanke's comments about a possible stimulus pullback and interest rate hike dampened investor sentiment. COMEX April gold down $12.60, or 1.2 percent, at $1,064.60 an ounce at 10:24 am EST (1524 GMT). Range $1,063.10 to $1,083.
Bernanke's comment on possible stimulus pullback, interest hike weighs on market. Gold pressured by euro weakness amid uncertainties about the outcome on EU summit on a Greece bailout. More headline trading, increasing volatility possible as fiscal situation in Greece in focus, said George Gero at RBC.
Gold-to-oil ratio at 14.58, against 14.59 in the previous session. COMEX estimated 10 am volume at 74,825 contracts. Spot gold at $1,065.15, against $1,076.95 in late New York business in the previous session. March silver down 31.5 cents, or 2 percent, at $15.120 an ounce, taking the lead from gold. Range $15.110 to $15.645. COMEX estimated 10 am volume at 17,953 lots. Spot silver at $15.16 an ounce, compared with $15.41 late in the previous session in New York.
April platinum eases $6.80 to $1,495.60 an ounce as weaker economic sentiment hurts industrial metals. ETFS Platinum's holdings unchanged at 264,774 ounces as of February 8; ETFS Palladium's holdings also flat at 399,734 ounces. Spot platinum at $1,497 an ounce. March palladium down $7.40, or 1.8 percent, at $409.20 an ounce, tracking platinum. Spot palladium at $411 an ounce.

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