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Gold barely firmer

NEW YORK: COMEX gold was barely firmer at midday in active, choppy trade, failing to achieve a sustained lift from rallies in the grain and petroleum sectors and weakness in the stock market.

The KR-CRB commodity futures index rose at mid-morning to fresh eight-year highs, pressuring stocks and lifting gold in its wake, but the gold market quickly ran out of steam and moved lower as the active futures neared $400 an ounce.

At 1250 EDT, June gold was up $0.20 at $397.70 an ounce, traded from $399.20 to $396.30.

Dealers quoted bullion at $395.10/$395.60.

Gold's noon volume was estimated at 32,000 lots, compared with Wednesday's total official volume of 23,327.

Floor sources noted fund buying helping to lift gold at mid-morning, although steady selling from a major trade source consistently pressured the market.

SILVER

COMEX silver remained firmer at midday, although the precious metals continued to show only a muted response to rallying grain and petroleum prices.

The KR-CRB index of commodity futures rose to fresh eight-year highs at mid-morning, spurring declines in the stock market and giving a brief lift to the precious metals, although gold subsequently retraced and silver stalled as stocks pared their losses.

At 1322 EDT, May silver was up 3.8 cents at $5.53 an ounce, traded from $5.555 to $5.48.

One floor source pegged next resistance for May silver at $5.58 to $5.60, followed by $5.65/$5.64.

PLATINUM

NYMEX platinum was firmer at midday, receiving a lift at mid-morning with gold as grain and energy prices rallied, although the market met with trade selling at nearby resistance levels, traders said.

Platinum was nevertheless able to maintain most of its early gains, despite a pull-back in gold below the unchanged level.

At 1315 EDT, July platinum was up $1.90 at $412.50 an ounce, traded from $413.90 to $410.10.

Traders said the contract was meeting resistance at $414.

June palladium was down $2.05 at $138.20 an ounce.-Reuter