Daily Gold Update

Source: Reuters

New York— U.S. gold futures finished at their highest close in nine days on Monday, bolstered by a broadly lower dollar ahead of Tuesday's U.S. trade report, dealers said.

Silver scaled a three-week peak, likewise buoyed by the firmer euro and fund buying in copper, a leading industrial metals indicator, which hit an all-time high in London.

Active June delivery gold on the New York Mercantile Exchange's COMEX division was up $1.60 at $430.40 an ounce, after trading from $428.20 and $431.70, its highest close since March 31.

"Gold is higher with the euro and on a little technical buying. There's not a lot of action — everything is in suspension and looking for clear direction from tomorrow's trade number," said a New York head bullion trader at a bank.

The trade figures, which are forecast to show the deficit widened to $59 billion in February — the country's second-highest gap on record — could rekindle worries over the twin U.S. deficits and reverse the dollar's recovery this year.

The euro traded at a 10-day high against the dollar, and by midafternoon was fetching around $1.2984.

Spot gold last priced at $428.25/9.00 an ounce, compared with Friday's New York close at $426.60/7.30. The afternoon fix in London was $429.

A weaker greenback boosts gold as it raises its safe-haven appeal for investors and also makes the dollar-denominated metal cheaper for non-U.S. buyers.

Portfolio figures due on Friday, meanwhile, will show if the United States was able to attract enough capital from overseas to cover its current account gap.

Gold traders also were awaiting word from the International Monetary Fund about a proposal to sell part of its gold to fund Third World debt relief. A decision is expected by mid-month.

In CFTC's Commitments of Traders data released Friday, the net speculative net long position in COMEX gold rose to 106,264 contracts as of April 5 from 101,521 contracts on March 29.

IFR Markets senior commodities analyst Tim Evans said he pegs resistance in COMEX June gold at $431.40 and then $435 to $440, with support at $424.70, $418.80 and the Feb. 9 low of $414.

Silver prices climbed after London Metal Exchange (LME) three-month copper touched an all-time high at $3,320 a tonne, supported by steep gains in Shanghai copper futures due to tight supply there and a weaker dollar.

May silver advanced 9.0 cents to $7.255 an ounce, its highest settlement since March 18, after trading from $7.135 to $7.30. Spot silver ended at $7.23/26 versus $7.13/16 previously. It fixed at $7.185.

July platinum inched up 50 cents to close at $860.80 an ounce. Spot platinum last traded at $857/862.

June palladium rose $2 to $200.95 an ounce. Spot palladium was quoted at $196/199.