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Comex gold ends off, palladium hit by spec sales

NEW YORK: Comex gold drifted to a slightly easier finish Friday while Nymex palladium sank on further speculative long liquidation ahead of weekend presidential elections in Russia, the world's biggest palladium producer.

April gold eased 30 cents to close at $285.10 an ounce after trading $286.10 to $284.60. Spot bullion was quoted at $284.80/5.30 compared to the Thursday quote of $284.70/5.50 and the late fix of $284.85.

"It was very, very quiet indeed," Ian MacDonald, manager of precious metals trading at Commerzbank, said.

After an early rise, gold retreated due to pressure from small speculators to probe its lows for the day.

But MacDonald and other brokers said bullion steadied up as it got support from good physical buying from both India and Turkey.

"The Indians feel it (gold is) cheap," said MacDonald. "There's good physical buying underneath the market."

Losses in gold were also pared somewhat by the stronger performance of silver in late session dealings.

May silver went up to end at $5.148 an ounce against the Thursday close at $5.123. Spot silver was seen at $5.09/12 against the quote on Thursday of $5.07/09 and the late fix of $5.08.

In the other metals, Nymex June palladium was hit by further speculative long liquidation as it sank $22 to end at $618 an ounce, trading from $615.10 to $638.

"Palladium was the one that took the bigger hit," one Comex floor broker said.

Most dealers attribute part of the selling to the desire by some to lighten their positions in front of the weekend presidential polls in Russia.

"The elections in Russia likely had an impact on this thing although it is beginning to look a bit overdone," another dealer said.

The trade expects Acting President Vladimir Putin -- seen as the almost certain winner of the election -- will sign the necessary documents allowing exports.

The market has been waiting for news that long-delayed Russian shipments will be arriving in the West, where record automotive demand helped power palladium to all-time highs over $800 an ounce last month.

Nymex April platinum finished largely steady, gaining $0.10 to settle at $478.70 an ounce.

"We got some local shortcovering in platinum so it didn't take as much of a hit as palladium," a dealer said.-Reuters