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Gold prices

easier in dull trade

NEW YORK: Comex gold settled barely weaker in dull trade on Monday, largely neglected as the rallying silver market continued to steal the spotlight in the precious metals complex, traders said.

December gold settled $0.20 lower at $389.70 an ounce, traded between $391.00 and $389.10. A high of $396.00 was seen on ACCESS overnight, although many traders disregard ACCESS prices due to thin, volatile conditions. Volume was estimated at 24,000 lots, up from Friday's official 19,066.

Dealers quoted bullion at $384.40/$384.90.

The market appeared to draw no strength from a rally in the KR-CRB index of commodity futures, which edged above last year's peak to reach its highest level since October 1990.

Traders also doubted the market would be affected by Federal Open Market Committee meeting, which was widely expected to keep U.S. interest rates steady.

The market continued to lag silver, with the gold-silver ratio slipping to 66.56 basis the December contracts, versus 67.7 at Friday's close and 73.9 at the prior week's close. Comex silver settles near highs after late gains

SILVER

Comex silver settled firmer and near 3-1/2 month highs hit during a midday rally, rising late in the session amid continued worries about near-term supply tightness, traders said.

They noted that the market's concerns had shifted to a possible squeeze on the Comex September contract, with spot market tightness in London appearing to ease after silver apparently was shipped there from Comex warehouses.

Comex warehouse data released after today's close showed a drawdown Monday of 5,783,152 ounces to 148,241,075. Stocks have fallen over 25 million ounces in the last three days, while open interest in the September silver contract last Friday still exceeded 200 million ounces.

September silver settled 9.5 cents higher at $5.792 an ounce, traded between $5.825 and $5.72. A high of $5.86 was seen on ACCESS trade overnight. December ended 9.7 cents higher at $5.855. Volume was estimated at 29,000 lots, with 3,133 switches, down from Friday's very heavy 48,723.

Traders downplayed the impact on today's trade of a rally in the KR-CRB index of commodity futures, which edged above the June 1994 high to reach its highest levels since October 1990.

Platinum

NYMEX platinum settled firmer, after rising early amid fund short covering as the market continued to take its cues from the rallying silver market, traders said.

The market was relatively quiet, however, apparently pausing to catch its breath after strong gains at the end of last week.

October platinum settled $1.30 higher at $432.40 an ounce, traded between $434.90 and $431.50, a range set early. Volume was pegged at 3,112 lots, little changed from Friday's official 2,963.

One trader said the market could see further fund short covering above $435, although he expected the tone of the market to continue to be set by silver, where worries about a possible squeeze on the Comex September contract kept players on edge.

September palladium settled $0.55 higher at $152.40 an ounce.-Reuter