Bullion pressured by dollar rising sharply for fourth straight session against euro. Volatile currency movements after strong US GDP data made for choppy gold trade, said dealers. Banks, trading houses buy call options in anticipation of rising price volatility, said COMEX floor trader Jonathan Jossen.
Liquidation pressure lessens after contract rollover to April from February, said traders. April futures on track to finish January 2 percent lower from December 31 close of $1,097.60. COMEX estimated 10 am volume at 97,696 contracts. Gold/oil ratio at 14.51, down from 14.74 the previous day.
Spot gold at $1,078.65, down from the previous session's late quote of $1,086.75. March silver down 7.7 cents at $16.135 an ounce on investor selling. Range $16.375 to $16.045. COMEX estimated 10 am volume at 15,746 lots. Spot silver at $16.08, versus the previous session's late quote of $16.20.
April platinum up $20.20, or 1.4 percent, at $1,514.10 on investment demand related to exchange traded funds. ETFS Platinum's holdings unchanged at 214,900 ounces as of January 28; ETFS Palladium's holdings at 399,925 ounces. March palladium up $2.40 at $415.75 an ounce, tagging on platinum's gains. Spot palladium at $414.50.