NY gold rises after positive GFMS price outlook

NEW YORK, April 7 (Reuters) - U.S. gold futures rallied on
Tuesday after an optimistic price view released in the 2009
GFMS gold survey sparked some short-cover buying that followed
a steep sell off in the previous session, analysts said.

For the latest detailed report, click on [GOL/].

GOLD

* Gold for June delivery GCM9 was up $9.90, or 1.13
percent, at $882.70 an ounce on the COMEX division of the New
York Mercantile Exchange.

* Trade ranged from $870.10 an $884.0.

* Monday's low of $865 was last hit on Jan. 23.

* The positive price projections issued by metals
consultancy GFMS gave a healthy lift to gold - analysts.

* Gold may rise through $1,100 an ounce in 2009 as
investment is supported by fears about rising inflation,
potential dollar weakness, and fears over financial instability
- GFMS. [ID:nWLA1721]

* The initial rally prompted short-term players to cover
short gold positions - traders.

* A decline in U.S. stock markets added to gold's boost as
investors braced for quarterly earnings - traders.

* U.S. stocks fell on expectations for another dismal
reading on corporate performance and fresh worries surfaced
over the amount of toxic assets on bank balance sheets. [.N]

* A tug of war seems to be going on between investors who
think it's time to raise risk appetite and sell gold and others
who still see a gloomy outlook and buy dips - analysts.

* The dollar rose versus euro on safe-haven buying of the
U.S. currency that spilled over to gold - traders.

* The dollar gained as fears about the global banking
sector prompted investors to abandon risky assets - [USD/]

* Technical charts show next support at $850 and next
upside breakout $925 an ounce - analysts.

* COMEX estimated 10:00 a.m. volume at 44,964 lots.

* Open interest fell by 6,486 to 351,584 lots on April 3.

* Spot gold XAU= rose to $880.7/882.20 an ounce from
$868.25/869.85 in late Monday trade in New York.

* London afternoon fix XAUFIX= was up at $879.75.

SILVER

* COMEX May silver SIK9 gained with gold and other
industrial metals.

* May futures advanced 18.50 cents, or 1.49 percent, to
$12.2950 an ounce.

* Trading band spanned $12.02 to $12.3050 an ounce.

* Analysts say they see no silver-specific factor driving
prices, which generally moves in tandem with gold.

* COMEX estimated 10:00 a.m. volume at 7,010 lots.

* Open interest was up 24 lots at 93,924 on Friday.

* Spot silver XAG= increased to $12.29/12.36 an ounce
from $12.10/12.18 an ounce by late Monday in New York.

* Silver fix XAGFIX= was dropped in London to $12.17.

PLATINUM

* NYMEX July platinum PLN9 was $20.40 cents higher at
$1,173.00 an ounce.

* Spot platinum XPT= was up at $1,166.0/1,176.0 an ounce
from than $1,140.0/1,150.0 an ounce late Monday.

PALLADIUM

* June palladium PAM9 was up $1.85 at $227.60 an ounce.

* Spot palladium XPD= edged higher to $223.00/228.00 from
$221.50/226.50 an ounce in late Monday trade.
(Reporting by Carole Vaporean; Editing by Lisa Shumaker)