Comex gold rose sharply on Wednesday after Federal Reserve Chairman Alan Greenspan told Congress that the weak dollar could help reduce the US current account deficit.
Traders said they inter-prated Greenspan's remark as an expression of tolerance for the dollar's decline, which was a strong catalyst for gold's rise to 15-year highs last month.
Spot gold rose to $411.25/2.00 from Tuesday's close at $406.00/6.75. London's afternoon fix was at $405.75. Gold had been consolidating since a shakeout of speculative long positions drove it down to $395 nine days ago.
It hit a 15-year high at $432.30 on January 6 as the euro was smashing records. Pogoda said that gold should reclaim $415 if the euro overcomes $1.30 for the first time.
Comex March silver followed gold up 17.0 cents to $6.558 an ounce. The range was $6.31 to $6.60. Spot silver rose to $6.53/55 from $6.37/39.
It fixed at $6.285. Nymex April platinum went up $9.60 to $842.70 an ounce. Spot touched $845.00/850.00. March palladium slipped 15 cents to $241.35. Spot traded at $235.00/240.00.

Copyright Reuters, 2004

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