GOLD RISESPosted to the web on: 24 November 2006
Gold rises on dollar, platinum steady
Reuters
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TAIPEI - Gold ticked up on Friday as a weaker dollar and thin liquidity due to holidays lifted prices, while platinum steadied after a volatile week that saw it touch a new record peak on speculative buying.
Spot gold had risen to $632,30/633,30 an ounce in early trade, up from $630,20/631,20 late in London.
"It’s very thin as the Japanese have just come back from a holiday and the Americans are still not in today," said Ellison Chu, senior manager at Standard Bank London in Hong Kong.
Japanese markets reopened for trade on Friday following a national vacation on Thursday, although New York commodities and energy markets will remain closed on Friday for the Thanksgiving holiday.
"The US dollar and oil price lead gold higher, and we may see $635 again."
The dollar held near a five-and-a-half month low against the euro on a strong German business sentiment survey that strengthened expectations that euro zone interest rates will keep rising into next year.
In early trade, the dollar stood at about $1,2954 against the euro, putting it well in range of $1,2979, above which would be its lowest point since May last year.
Against the yen, the dollar was at 116,36, just off a nadir of 116,14 hit the previous day.
Oil prices steadied after crude stocks increased in top consumer the US, weighing on already well-supplied markets, with US crude rising 4 cents a barrel to $59,28.
Benchmark gold futures on the Tokyo Commodity Exchange dipped ¥3 per gram to 2,396 yen per gram.
Spot platinum was at $1,165 an ounce, roughly steady with $1,163 in London, where it had gained as much as 1,8%, capping a volatile week in which it hit a new record peak of $1,395. The metal had spiked amid talk of the launch of an exchange traded fund only to tumble 18% the next day.
"Platinum spiked up on panic short-covering, I don’t think it was investors, but that desperation has calmed down now and the macro forces are resuming again," said a Singapore-based trader. Silver was at $13,12/13,17 an ounce from $13,10/13,17 late in London. Palladium was at $324,00/329,00 an ounce, against $322/327.