US gold futures bounced from a one-week low to end higher on Wednesday, hoisted by fund and broker buying after the dollar failed to rally on unexpectedly strong US durable goods data. Silver got a lift on dealer buying due to firm gold and copper surging to record highs, trade sources said.
At the New York Mercantile Exchange, Comex August gold climbed $1.30 to $424.80 an ounce, after dealing from $421.80, a low since last on Wednesday, and a high of $426.
Gold prices continued to ape moves in the dollar, dealers said, though in Comex futures specifically, speculators were fixated on rollover from August gold into December before first notice day for delivery on Friday.
"It's really just rollover action in the gold right now," said analyst Tom Boustead in a Reface research update. He added spec buying also was visible amid the day's weaker dollar.
"The gold market looks aimless we're waiting for the rollover," said George Gero, a senior VP at Egg Mason Wood Walker. Gero estimated final volume to be above 125,000 lots, which was above on Tuesday's official count of 111,481 lots.
Open interest fell sharply by 8,525 contracts to 114,252 lots after on Tuesday's gold options expiration.
The euro slipped near to 14-month lows against the dollar before steadying to $1.2079 after gold closed. Spot gold fetched $424.50/5.20 an ounce, above on Tuesday's New York close at $423.20/4.00.
On Wednesday's afternoon fix in London was at $424. In what would be supportive to gold as a dollar alternative, Merrill Lynch said in a note the greenback could get broadly weighed down as the Fed enters the late stages of its tightening cycle and data will show the US economy is slowing.
The bank went short the dollar. Meanwhile, US June durable goods orders rose 1.4 percent and May's figure was revised up to a mighty 6.4 percent from 5.5 percent.
The bulk of this week's economic data on Friday, with a report on second-quarter gross domestic product, the University of Michigan's consumer confidence survey and the Chicago purchasing managers index set to come out.
Newmont Mining Corp, the No 1 gold producer, said second-quarter profits rose about 33 percent, benefiting from higher gold prices during the quarter.
September silver rising 2.2 cents to $7.04 an ounce, after trading $6.965-7.075. Spot silver was up at $7.01/04 an ounce, from Tuesday's close at $6.97/7.00.
Today's fix was down at $6.99. At the Nymex, October platinum fell 50 cents to $884.90 an ounce. Spot reached $881/884. September palladium rose 70 cents to $191.60 an ounce. Spot held at $187/190.
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