COMEX gold held above $400 an ounce Wednesday morning, but activity was muted because its appeal as a portfolio hedge against global security worries was partly neutralised by a firmer dollar.
The dollar shook off such geopolitical concerns in the wake of last Thursday's bombings in Madrid and rose against the euro.
Spanish authorities said the investigation was in a decisive phase. Spain's El Pais newspaper reported that police believed the attacks which killed 201 people and wounded 1,400 others on packed commuter trains were carried out by people linked to a Moroccan group, which it said was financed by al Qaeda, the organisation blamed for the September 11, 2001, attacks on America.
April gold at 10:13 am EST (1513 GMT) was up 40 cents at $403.00 an ounce, trading from $401.90 to $403.80.
Spot gold was priced at $402.70/3.50, up from the close at $402.00/2.80. London's morning fix was $402.00.
The euro was quoted at $1.2224/28, falling from the close at $1.2270/73. With gold firmer, its usual tight relationship with Europe's currency was less in evidence.
April gold hit a 15-year high at $432.30 in early January as the euro was rallying to lifetime highs against the greenback. The contract fell to $388.20 on March 3 as the euro completed its retreat.
May silver was up 3.8 cents at $7.205 an ounce, trading $7.155 to $7.215. Spot silver fetched $7.16/18, up from $7.13/15 late Tuesday. The fix was at $7.155.
NYMEX April platinum was $5.60 higher at $908.00 an ounce. Spot was indicated at $905.00/910.00. June palladium was down $6.10 at $275.50 an ounce. Spot was priced $275.00/280.00.

Copyright Reuters, 2004

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