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Gold barely firmer

NEW YORK: COMEX gold was barely firmer at midday, holding within the middle of a range established early when a dip to fresh 3-1/2-month lows uncovered support, traders said.

Floor sources noted the trade and commission houses on both sides of the market in thin trade, with players appearing reluctant to take positions ahead of the weekend.

At 1300 EDT, June gold was up $0.10 at $392.50 an ounce, traded from $393.30 to $391.50, the lowest for a most-active contract since Jan 2.

Dealers quoted bullion at $390.30/$390.80.

Gold's open interest rose Thursday by a modest 1,083 lots to 199,806. Traders noted that open interest has shown only modest, choppy declines during the steady slide of the past week, lending credence to the view that new speculative short positions were entering the market.

Pell Brothers Trading analyst Don Tierney said the market would be monitoring the IMF/World Bank meeting in Washington next week, for further word on progress of a proposal to sell some IMF gold in order to aid the world's poorest nations.

IMF managing director Michel Camdessus unnerved the market yesterday when he reiterated his support for selling a "modest amount" of IMF gold.

Tierney nevertheless expected the gold market would next week begin probing higher again, perhaps after testing support around $390 in the June contract.-Reuter