U.S. gold nears $980 on safe-haven demand

Wed Sep 2, 2009 3:21pm EDT

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 NEW YORK, Sept 2 (Reuters) - U.S. gold futures rallied more
than 2 percent to end near $980 an ounce on Wednesday, marking
the biggest one-day percentage gain since March, boosted by
safe-haven demand amid renewed worries about the financial
sector.
 For the latest detailed report, click on [GOL/].
 GOLD
 * December gold GCZ9 settled up $22, or 2.3 percent, at
$978.50 an ounce on the COMEX division of the New York
Mercantile Exchange.
 * Wednesday's rally marked the biggest one-day percentage
gain since March 19, when it rallied nearly 8 percent.
 * Ranging from $952.50 to $981.40 -- the highest price
since June 5.
 * Gold driven by safe-haven buying due to concerns about
the U.S. financial sector, breaking the positive correlation
between gold and equities - James Steel, chief commodities
analyst at HSBC.
 * On Monday, the U.S. stock market's weakness helped gold,
as the S&P 500 index lost more than 2 percent on worries about
financial companies.
 * Inflow related to the closure of energies and other
commodities exchange-traded products (ETP) prompted investors
to step up buying in gold - traders.
 * Deutsche bank said on Tuesday it would redeem all of its
most bullish oil ETPs as the U.S. regulator moves to curb
speculation in commodities market. Last week, Barclays said it
temporarily suspended new shares creation of its iShares S&P
GSCI trust. [ID:nN26609264]
 * COMEX estimated final volume at 139,895 lots.
 * Gold/oil ratio at 14.36, up from the previous session's
13.45.
 * Spot gold XAU= at $976.65 an ounce at 3:07 p.m. EDT
(2007 GMT), against $955.85 in late Tuesday dealings in New
York.
 * London afternoon gold fix XAUFIX= was at $964.75 an
ounce.
 SILVER
 * December silver SIZ9 finished up 30.5 cents, or 2
percent, at $15.365 an ounce, following gold's rally.
 * Silver futures have recently outperformed gold, helped by
better economic sentiment. Usually less-liquid silver has the
characteristics of both precious and industrial metals.
 * Ranged from $14.865 to $15.490 an ounce -- the highest
level since June 12.
 * COMEX estimated final volume at 30,669 lots.
 * Spot silver XAG= at $15.35 an ounce, versus its
previous close of $15.04.
 * London silver fix XAGFIX= was at $14.91 an ounce.
 PLATINUM
 * October platinum PLV9 ended up $3.30 at $1,230.10 an
ounce, as gold's rally helped other precious metals erase
initial losses.
 * U.S. auto sales released on Tuesday showed signs of
stability, helping platinum group metals.
 * Uncertain supply due to labor actions in top platinum
producer South Africa provided underlying support.
 * Spot platinum XPT= at $1,229 an ounce against
$1,224.50.
 PALLADIUM
 * December palladium PAZ9 closed down 50 cents at $288.95
an ounce as investors took profits.
 * Spot palladium XPD= at $284.50 an ounce, against its
previous finish of $287.
                      Close  Change   Pct      2008   YTD
                                      Chg    Close Pct Chg
US gold       GCZ9     978.50   22.00   2.3   884.30   10.7
US silver     SIZ9     15.365   0.305   2.0   11.295   36.0
US platinum   PLV9    1230.10    3.30   0.3   941.50   30.7
US palladium  PAZ9     288.95   -0.50  -0.2   188.70   53.1
Prices at 3:07 p.m. EDT (1907 GMT)
Gold          XAU=     976.75   20.90   2.2  878.200   11.2
Silver        XAG=      15.35    0.31   2.1    11.30   35.8
Platinum      XPT=    1229.00    4.50   0.4   924.50   32.9
Palladium     XPD=     284.50   -2.50  -0.9   184.50   54.2
Gold Fix      XAUFIX=  964.75    9.75   1.0   836.50   15.3
Silver Fix    XAGFIX=  14.910   0.170   1.2   14.760    1.0
Platinum Fix  XPTFIX= 1210.00    0.00   0.0  1529.00  -20.9
Palladium Fix XPDFIX=  283.00    0.00   0.0   365.00  -22.5
 (Reporting by Frank Tang)

























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