(Adds analyst comments, updates prices)
By Frank Tang and Clara Denina
NEW YORK/LONDON, June 19 Gold surged over 3
percent for its best day in eight months on Thursday as the
Federal Reserve's lack of commitment to raise interest rates and
continued tensions in the Middle East unleashed a wave of short
Bullion hit its highest level in more than two months.
Silver jumped as much as 5 percent, while platinum and palladium
also climbed as new hurdles emerged to settling South Africa's
"The Fed statement and geopolitical tensions sparked a
frantic reversal in market sentiment. Investors are now bullish
instead of bearish on gold," said Phillip Streible, senior
commodities broker at Chicago-based RJ O'Brien.
Gold was higher during London hours as the U.S. dollar eased
after the Fed signalled on Wednesday it will stick with a
near-zero interest rate policy to support the economy,
disappointing traders who had bet on hints of policy tightening.
Gains accelerated shortly before midday in New York, after
prices pierced above $1,305 an ounce, triggering heavy stop-loss
orders for traders who had previously expected lower bullion
prices on hopes of a better U.S. economy.
Lower U.S. 2014 growth forecast by the Fed and lingering
geopolitical tensions in Iraq and Ukraine rekindled investors'
interest in gold, traders said.
Spot gold was up 3 percent at $1,315.90 an ounce by
3:52 p.m. EDT (1952 GMT), having earlier hit $1,321.70, a
Technical buying also helped lift prices on Thursday as the
rally sent gold above tough resistance at $1,285, near a key
Fibonacci retracement as well as its 50- and 100-day moving
averages, analysts said.
U.S. COMEX gold futures for August delivery settled
up $41.40 at $1,314.10 an ounce.
Silver gained 4.1 percent to $20.68 an ounce, having
earlier hit $20.91, a three-month high. It notched its biggest
one-day gain in four months.
Platinum rose 1.6 percent to $1,467.70 an ounce and
palladium was up by 1.5 percent to $835.05 an ounce. Both
were trading near one-week highs as a mining strike in major
producer South Africa looked set to drag on.
South African platinum union AMCU has made "unaffordable"
new demands beyond a deal struck with producers last week,
mining companies said on Wednesday, dashing hopes of an end to
the country's longest and costliest mining strike.
3:52 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold AUG 1314.10 41.40 3.3 1276.20 1322.00 220,589
US Silver SEP 20.692 0.871 4.4 19.875 20.970 13,847
US Plat JUL 1474.50 23.70 1.6 1450.10 1475.00 14,227
US Pall SEP 838.60 15.95 1.9 824.50 839.00 4,850
Gold 1315.90 38.40 3.0 1276.20 1321.70
Silver 20.680 0.820 4.1 19.860 20.910
Platinum 1467.70 23.80 1.6 1451.30 1472.00
Palladium 835.05 12.35 1.5 826.60 837.30
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 226,662 147,571 165,114 13.5 0.41
US Silver 109,742 49,807 55,340 18.42 0.70
US Platinum 18,620 14,585 12,336 17.34 -0.04
US Palladium 4,885 9,189 5,899 20.68 -0.33
(Additional reporting by A. Ananthalakshmi in Singapore;
editing by Pravin Char, David Evans, Peter Galloway, Marguerita
Choy and Matthew Lewis)