US gold rises as dollar drop helps sentiment

NEW YORK, Dec 31 (Reuters) - U.S. gold futures rebounded on
Thursday as a dollar drop improved investor sentiment, and the
metal is set to post its biggest yearly gain in three decades
due to a combination of currency depreciation worries, central
bank buying and doubts about the nascent economic recovery.

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

GOLD

* Gold futures for February delivery GCG0 up $4.20 to
$1,096.70 an ounce on the COMEX division of the New York
Mercantile Exchange by 10:32 a.m. EST (1532 GMT).

* Ranging from $1,093.10 to $1,107.60.

* COMEX/NYMEX floor and CME GLOBEX electronic platform
trading will have regular closing times on Dec. 31 and will be
shut on Jan. 1 for the New Year holiday.

* Gold futures supported as currency investors take profits
on the dollar's strong December gains. [USD/]

* Recent spate of strong U.S. employment, other economic
data boosted hopes of a robust recovery have helped the dollar
- traders.

* Worries about sovereign debt in some Euro zone countries
also have boosted the dollar and pressured bullion.

* Possible rising rate of sovereign credit default swaps --
bets on whether a country could repay its debt -- will be
supportive to gold prices - Nic Brown at Natixis.

* Investment demand provides underlying support. SPDR Gold
Trust (GLD) bullion holdings have risen 353 tonnes or 45
percent year to date.

* Gains in oil also lifts the metal, as U.S. crude futures
rose to touch $80 a barrel earlier in the session.

* Gold/oil ratio at 13.82, unchanged against its previous
session.

* COMEX's estimated 10 a.m. volume at 32,805 lots.

* Spot gold XAU= at $1,098.10, against the previous
session's late quote of $1,092.55 an ounce.

* London afternoon gold fix XAUFIX= at $1,087.50.

SILVER

* March silver SIH0 up 9.8 cents at $16.90 an ounce, up
with gold.

* Range from $16.780 to $17.105 an ounce.

* COMEX's estimated 10 a.m. volume at 5,659 lots.

* Spot silver XAG= at $16.87 an ounce, versus the
previous session's late quote at $16.79 an ounce.

* London silver fix XAGFIX= at $16.92.

PLATINUM

* NYMEX April platinum PLJ0 up $12.30 at $1,475.60 an
ounce on strong investor sentiment driven by expected
regulatory approval of the first U.S. platinum exchange traded
fund.

* Spot platinum XPT= was at $1,466.50 an ounce.

PALLADIUM

* March palladium PAH0 up $11.10, or 2.8 percent, to
$407.20 an ounce on strong investment buying.

* Spot palladium XPD= was at $403 an ounce.
Prices at 10:20 a.m. EST (1520 GMT)

Last Change Pct 2008 YTD

Chg Close % Chg
US gold GCG0 1099.40 6.90 0.6 884.30 24.3
US silver SIH0 16.875 0.073 0.4 11.295 49.4
US platinum PLF0 1464.40 12.10 0.8 941.50 55.5
US palladium PAH0 406.50 10.40 2.6 188.70 115.4
Gold XAU= 1098.30 5.75 0.5 878.20 25.1
Silver XAG= 16.85 0.06 0.4 11.30 49.1
Platinum XPT= 1463.00 9.00 0.6 924.50 58.2
Palladium XPD= 402.00 11.00 2.8 184.50 117.9
Gold Fix XAUFIX= 1104.00 16.50 1.5 836.50 32.0
Silver Fix XAGFIX= 16.99 7.00 0.4 14.76 15.1
Platinum Fix XPTFIX= 1466.00 5.00 0.3 1529.00 -4.1
Palladium Fix XPDFIX= 402.00 9.00 2.3 365.00 10.1
(Reporting by Frank Tang; Editing by Marguerita Choy)