RTRS: US gold rises toward $990 on asset allocation demand
NEW YORK, Sept 3 (Reuters) - U.S. gold futures rose to a
fresh three-month high Thursday in follow-through buying from
the previous session as underlying economic uncertainty
prompted investors to allocate funds into safe-haven hard
assets.
For the latest detailed report, click on [GOL/].
GOLD
* December gold GCZ9 up $4.90 at $983.40 an ounce at
10:23 a.m. EDT (1423 GMT) on the COMEX division of the New York
Mercantile Exchange.
* Ranging from $976.10 to $989.50 -- the highest price
since June 5.
* Wednesday's 2.3 percent rally marked the biggest one-day
percentage gain for the December contract since March 19, when
it rallied nearly 8 percent.
* Asset-diversification demand into gold by jittery
investors amid shaky equities markets propelled gold's rally -
Bill O'Neill, managing director of LOGIC Advisors.
* The price of gold futures has reached a new, higher
trading range, and bullion investors will focus on Friday's
U.S. August non-farm payrolls data to see if a test of the
psychological $1,000-an-ounce barrier is possible - O'Neill.
* Gold driven higher by safe-haven buying due to concerns
about the U.S. financial sector, and the recent positive
correlation between the metal and equities was notably broken
this week - analysts.
* Shares of gold mining companies, including No. 1 Barrick
Gold (ABX.TO) and No. 2 Newmont Mining (NEM.N), rallied on
Thursday as the price of the precious metal rose sharply.
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* Inflow related to the closure of energies and other
commodities exchange-traded products because of expected new
regulations on commodities market prompted investors to step up
buying in gold - traders.
* COMEX estimated 9 a.m. volume at 61,073 lots.
* Crude futures eased to trade below $70 per barrel as Wall
Street slipped. Investors view crude oil as a barometer of
economic growth.
* Gold/oil ratio at 14.42, up from the previous session's
14.22. Gold has outperformed oil this week, a sign that
inflation expectations could be on the rise.
* Spot gold XAU= at $981.40 an ounce, against $976.60 in
late Tuesday dealings in New York.
* London afternoon gold fix XAUFIX= was at $983 an
ounce.
SILVER
* December silver SIZ9 up 35.50 cents, or 2.3 percent, at
$15.720 an ounce, following gold's rally.
* Silver futures have recently outperformed gold, helped by
better economic sentiment. Usually less-liquid silver has the
characteristics of both precious and industrial metals.
* Ranged from $15.360 to $15.855 an ounce -- the highest
level since June 5.
* COMEX estimated 9 a.m. volume at 12,852 lots.
* Spot silver XAG= at $15.68 an ounce, versus its
previous close of $15.34.
* London silver fix XAGFIX= was at $15.73 an ounce.
PLATINUM
* October platinum PLV9 up $11.90 at $1,242 an ounce, as
gold's rally drove other precious metals higher.
* U.S. auto sales released on Monday showed signs of
stability, and better economic sentiment also boosted platinum
group metals, which are largely used as industrial metals.
* Uncertain supply due to labor actions in top platinum
producer South Africa provided underlying support.
* Spot platinum XPT= at $1,238 an ounce against $1,229.
PALLADIUM
* December palladium PAZ9 up $4.30, or 1.5 percent, at
$293.25 an ounce, tracking platinum's gains.
* Spot palladium XPD= at $289.50 an ounce, against its
previous finish of $284.50.