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  • Feb 18th, 2005
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US gold futures edged higher early Thursday, mostly fading the dollar's small moves, as players waited to hear a second day of congressional testimony by US Federal Reserve Chief Alan Greenspan. Gold for April delivery was up $1.30 at $428.20 an ounce by 10:27 am EST (1527 GMT) on the New York Mercantile Exchange's COMEX division, dealing within a range of $425.50 to $428.80.

Dealers said the influence was from the greenback, which was near a two-week low against the euro after Greenspan on Wednesday did not modify the Fed's plan to steadily raise interest rates.

Greenspan said in testimony Thursday morning that rates remain "fairly low."

"There is not much going on. We're in a waiting period," said a gold broker. "Gold has leaped back into the range we were in for most of January, but it looks like we sort of reversed our downtrend from the last three months last week, so I would expect see the market move up."

In other data, US first time claims for US state unemployment insurance aid fell to 302,000 as of February 12 - a four-year low - from 304,000 previously, and compared with expectations for a rise to 315,000.

Traders also were eyeing the fund players in gold, who could start to rebuild some of the large position in the market that recently was trimmed back.

Brokers said COMEX gold futures were stuck in a trading range from about $424 to $430, while bullion was moving between $421 and $428.

Spot gold changed hands at $425.95/6.70 an ounce, off from the New York close on Wednesday at $425.50/6.20. Thursday's afternoon fix in London was at $426.25.

March silver rose 6.0 cents to $7.315 an ounce, moving from $7.175 to $7.325. Spot touched $7.29/32, up from $7.24/27 previously. The fix was at $7.255.

NYMEX April platinum rose $6.50 to $862.50 an ounce. Spot was at $862/867. March palladium fell $1.05 to $182 an ounce. Spot fetched $179/183.

Copyright Reuters, 2005


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