US gold futures ended up more than 1 percent on Tuesday, touching a near three-week high on inflation fears and a technical breakout after key resistance at 100-day moving average was breached. COMEX April gold futures settled up $15.90 or 1.2 percent at $1,364.10 an ounce on the COMEX division of the NYMEX. Ranged from $1,348.90 to $1,368.7 an ounce - a near three-week high.
A rise in Chinese interest rates for the second time in just over six weeks benefited gold's status as an inflation hedge, even as the move initially prompted selling in the metal along with industrial commodities. COMEX total gold futures volume at about 135,000 lots, about 30 percent lower than its 30-day average, in line with lighter-than-usual volume last several sessions - preliminary Reuters data.
Spot gold rose 0.9 percent to $1,362.90 an ounce by 2:58 pm EST (1958 GMT). COMEX March silver ended up 92.8 cents or 3.2 percent at $30.271 an ounce on gold's rally. Ranged from $29.26 to $30.345. Spot silver rallied 3.2 percent to $30.30 an ounce. NYMEX April platinum finished up $17.70 at $1,861.90 an ounce as better economic sentiment lifted metals with strong industrial demand.
Spot platinum hit its highest since July 2008 at $1,860.24 an ounce, and was last up 0.9 percent at $1,855. NYMEX March palladium closed up $19.40 or 2.4 percent at $838.45 an ounce, tracking platinum. Spot palladium rose to a 10-year high at $836.50 and was last up 2 percent at $831.97 an ounce.