US gold futures end lower amid heavy volume for a second straight day on Wednesday, but bullion recoups initial sharp losses as crude oil turns higher after tanking early.
GOLD: The June gold contract on COMEX division of New York Mercantile Exchange settles down $7.40 at $900.50 an ounce. June futures slumped earlier to $888.30, a 10-day low. The session high was $909.20. Gold's inflation-hedge role enhanced as oil reverses early sharp decline, ending above $131 a barrel. US crude futures had traded as low as $125.96 a barrel in early trade.
Gold's alternative currency appeal dented as the dollar rallies on strong US durable goods data. If gold can hold above Wednesday's lows, prices could push back up to the $930 level - MarketClub.com President Adam Hewison. Bullion seemed to be moving in a trading range in the short term - Hewison.
Dollar likely to provide intra-day direction, while oil provides background inflationary support to bullion - analyst. China is expected to surpass South Africa to be the world's top gold producer in 2008 - China Gold Association. COMEX estimated final volume at a busy 259,684 lots, while options turnover at 5,624 lots. Spot gold at $899.65/901.05 an ounce 2:15 pm EDT (1815 GMT), compared with $907.10/908.30 in late Tuesday trade. The London afternoon gold fix at $902.50.
PLATINUM: July finishes down $61.20, or 2.9 percent, at $2,066.90 an ounce, off its session low of $2,028 an ounce. Initial heavy selling in crude oil and other commodities prompt profit taking in the platinum market. Spot platinum quoted at $2,059/2,079.
PALLADIUM: September palladium closes down $8.10, or 1.8 percent, at $439.75 an ounce. Spot palladium quoted at $432/440.
SILVER: July futures end down 5.0 cents at $17.415 an ounce. Short covering and dip-buying after Tuesday solid losses gave way to weakness in other precious metals - dealers. Ranged $17.680 to $17.065, a one-week bottom. Spot silver at $17.37/17.43 an ounce versus the $17.41/17.48 late quote of Tuesday. London silver fix was at $17.26. US copper futures ended down Wednesday, touching their lowest point since late March, as a stronger dollar and concerns about waning demand kept the red metal under pressure, analysts said. Final futures volumes totalled 17,023 lots, compared with Tuesday's final count of 11,211 lots.Open interest fell 710 lots to 98,441 contracts as of May 27.
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