US gold ends up as oil gains, geopolitics won out

NEW YORK, Dec 18 (Reuters) - New York gold futures finished
a choppy Friday with modest gains, when early selling sparked
by the dollar's renewed advance on the euro later gave way to
short cover buying at the lows especially as inflationary and
Middle East concerns took the focus, traders said.

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

GOLD

* Gold futures for February delivery GCG0 on the COMEX
division of the New York Mercantile Exchange were up $4.10 at
$1,111.50 an ounce by the close.

* Range spanned $1,097.40 and $1,118.10 an ounce.

* Gold was able to push into positive territory despite the
dollar's gains on the euro, as the U.S. currency headed for its
best weekly gain since April. [USD/]

* Gains in oil helped gold prices rally for its
inflationary implications, adding to other recent indications
that inflation was picking up - traders.

* The oil price rise resulting from the Middle East
incursion also provided underpinning to gold as an inflation
hedge - traders.

* U.S. crude futures rose nearly 1 percent in choppy
pre-holiday trade on short covering ahead of the January
contract expiration on Monday. [O/R]

* A dispute between Iran and Iraq and cold weather across
the U.S. and Europe helped support oil prices.

* Iraqi reports that 11 Iranian troops entered Iraqi
territory, raising the Iranian flag at a disputed oilfield.
[ID:nLDE5BH1BI]

* Gold also became a safe-haven play after the Iran/Iraq
news spread - traders.

* "Earlier margin selling was overcome by Friday short
covering, following Iran crude news," said George Gero at RBC
Wealth Management in New York.

* With players on both sides of the gold play heading into
year end and setting up for early 2010 next week could also
prove to be volatile - traders.

* "Next week could be even more volatile as we approach
year end and mark to the market of futures accounts," said
Gero.

* Spot gold XAU= rises to $1,112.50 an ounce in late New
York trade from the previous session's $1,097.80 a tonne.

* COMEX estimated final gold volume 159,064 lots.

* London afternoon gold fix XAUFIX= was set at $1,104.50
an ounce.

SILVER

* March silver SIH0 added 12.50 cents to end at $17.32 an
ounce.

* Range spanned $17.1050 to $17.39 per ounce.

* COMEX estimated final silver volume at 24,963 lots.

* Spot silver XAG= was higher at $17.27 an ounce than the
previous session's late quote at $17.13.

* London silver was fixed XAGFIX= lower at $17.31 an
ounce.

PLATINUM

* NYMEX January platinum PLF0 rose $3.40 to finish at
$1,429.30 an ounce.

* Spot platinum XPT= was quoted at $1,428.0 an ounce, up
from $1,421.0 late Thursday.

PALLADIUM

* March palladium PAH0 loses $2.10 to close at $367.90 an
ounce.

* Spot palladium XPD= quoted higher at $362.0 an ounce
from $359.0 an ounce previously.
(Reporting by Carole Vaporean; Editing by David Gregorio)