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Gold remains weaker

NEW YORK: COMEX gold remained weaker at midday in quiet trade, surviving a test of support at just above $396 an ounce in the June contract for the fourth consecutive session.

Floor sources noted the trade on both sides of the market, which showed only a muted response to a modest pullback in the KR-CRB commodity futures index after rallying to new eight-year highs for six consecutive days.

At 1300 EDT, most-active June gold was off $1.40 at $396.90 an ounce, traded from $398.10 to $396.30.

Dealers quoted bullion at $394.10/$394.60.

Open interest in the June $410 call options surged Thursday by 5,233 lots, reflecting heavy fund buying at that strike yesterday, traders said. The gold futures' open interest also jumped 5,870 lots to 207,058, which one trader attributed in part to options-related activity.

Today's May options expiry after the close was expected to pass quietly, however, with open interest at the nearest call strike of $400 low at about 2,500 lots as of Thursday.-Reuter