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Bullion firmer

NEW YORK: Comex gold was barely firmer at midday in dull trade, holding in the middle of its early range after apparent trade selling halted a probe of the upside, traders said.

They said a rally in crude oil prices today was positive for market sentiment, although the June futures continued to struggle with resistance above $394 an ounce.

At 1305 EDT, June gold was up $0.40 at $394.00 an ounce, traded from $394.50 to $393.30, a range set early.

Gold's open interest Monday rose 2,993 lots to 202,661, adding credence to the view that fresh fund long positions were largely behind the day's modest gains.

The influx of new positions worried some traders, however, that long liquidation could pressure prices if commodity prices pull back significantly from their recent highs.

The closely watched KR-CRB commodity futures index was slightly weaker today, after soaring to new eight-year highs Monday. Today's softer tone reflected Monday's expiry of the spot crude oil contract and declines in coffee and soybean prices after Monday's rally.-Reuter