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Gold firmer,

silver weaker

in thin volume

NEW YORK: Comex gold settled barely firmer Friday, ending a streak of five consecutive lower closes, although the market continued struggling to find a floor as steady speculative selling helped pressure the market to its lowest levels since the beginning of the year.

June gold settled $0.30 firmer at $392.70 an ounce, traded from $393.30 to $391.50, the lowest for a most-active contract since Jan 2. The contract shed $4.40 from last week's close.

Today's volume was modest at an estimated 19,000 lots, down from Thursday's official 32,272. Dealers quoted bullion at $390.50/$390.80.

The market spent most of the session drifting in thin volume inside a range established early, after an early dip to fresh lows found support from the trade.

Traders noted that funds appeared to have shifted to shorting the market after liquidating long positions, as the market's technical picture turned increasingly negative.

Many traders expected the market was nearing a near-term bottom, however, with support pegged at $388 in the cash market and $390 in the June futures.

One bullion dealer warned, however, against complacency in the market that prices would soon start moving to the upside. "Too many people think it's at a bottom," he said.

Traders noted persistent suspicions that South African producers were selling forward into the market, with the rand's recent slide against the dollar making sales to the world market more attractive.

The market will be eyeing the IMF/World Bank meeting in Washington next week for any further indications of whether a proposal to sell a small amount of IMF gold is picking up support. IMF managing director Camdessus reiterated his support for such a plan in a press conference Thursday. COMEX silver settles slightly weaker

SILVER

NEW YORK: Comex silver settled slightly weaker in thin trade, as the precious metals continued struggling to build a base after a week-long slide.

Silver prices slipped shortly after the opening and retested Tuesday's 3-1/2-month low, but the market managed to find support and spent the remainder of the session drifting inside its early range.

May silver settled 1.0 cent lower at $5.257 an ounce, traded from $5.295 to $5.23. The contract lost 26.1 cents from last week's close.

The gold-silver ratio steadily rose this week, as the more industrial white metals slid relative to gold. The ratio, basis the most-active June gold and May silver contracts, ended the week at 74.70, up from last week's 71.96.

Today's volume was modest at an estimated 17,000 lots, down from Thursday's official 26,803.

Lease rates were also modestly firmer at a little more than one percent in one-month rates. Traders noted borrowing entering the market Thursday, although there was no follow-through today.

Comex silver warehouse stocks rose 407,345 ounces Thursday to 141,398,273 according to data released after the close. NYMEX platinum ends higher despite early slide

PLATINUM

NEW YORK: NYMEX platinum settled higher, after managing to bounce early from a slip to fresh life-of-contract lows.

The active July futures managed a bounce on short-covering after finding support near the $400 an ounce level, with light stop-loss buying helping to fuel the market's rebound.

July platinum settled $2.30 higher at $404.30 an ounce, traded from $406.50 to $401.00, a lifetime low and the lowest for a most-active contract so far this year. The market lost $5.90 from last week's close. Today's volume was moderate at an estimated 3,652 lots, down from Thursday's 4,035.

Platinum regained today some of the ground it lost earlier in the week vis-a-vis gold, with the premium to the June gold contract rising $2.00 to $11.60. The spread has nevertheless narrowed $1.50 since last week's close.

June palladium settled $1.25 lower at $133.90 an ounce, managing only a light bounce from a 1-1/2-month low of $133.-Reuter