Buying interest emerged as traders returned after Martin Luther King Jr. Day holiday on Monday. Indian traders seen mainly on the sidelines, awaiting fresh price declines, while speculative buying seen in precious metals, said Jon Nadler at Kitco Metals Inc COMEX estimated midday volume at 190,725 lots.
Spot gold at $1,137.80 an ounce, against the previous session's late quote of $1,132.50. March silver up 32.3 cents, or 1.8 percent, at $18.750 an ounce, tagging gold. Range from $18.400 to $18.880. COMEX estimated midday volume at 35,965 lots. Spot silver at $18.72 an ounce, versus the previous session's late quote of $18.61.
NYMEX April platinum up $30.90, or 1.9 percent, at $1,627 an ounce on strong market sentiment due to the new US platinum and palladium exchange traded funds. Platinum futures rose to session high $1,647.70, their loftiest level since August 2008. PGM prices to outperform, based on the potential strength of industrial production in 2010, especially in the auto sector, said Barclays Capital. Spot platinum was at $1,627 an ounce.
March palladium hit an 18-month high at $462.25. It was last up $12.80, or 2.9 percent, at $460.55 an ounce on ETF-related investment demand. Spot palladium was at $460.50 an ounce. March copper up 8.20 cents, or 2.5 percent, at $3.4480 a lb, on economic optimism and broad-based precious metals' gains.
Benchmark copper for March delivery rose 5.75 cents, or 1.7 percent, to $3.4235 per lb by 10:37 am EST (1537 GMT) on the New York Mercantile Exchange's COMEX division. Range from $3.3580 to $3.46, its highest level since January 12. COMEX estimated futures volume at 19,047 lots by 10 am.