950804

Gold prices firmer

at one-week highs

NEW YORK: Comex gold settled firmer at a fresh one-week high, prompting many traders to look favorably on the market's near-term outlook as it struggles to recover from the declines of the past week.

Today's trade was quiet and thin, however, and traders noted that tough resistance looms just above the market.

December gold settled $1.40 higher at $390.30 an ounce, a one-week high and the top of a narrow $390.30 to $389.40 range established early. A low of $388.70 was hit on ACCESS overnight. Volume was modest at an estimated 18,000 lots, with 1,323 switches, versus Wednesday's light 14,979. Dealers quoted bullion at $384.20/$384.70.

Traders noted modest fund buying today, while short-term lease rates continued to rise, gaining about 50 basis points from Wednesday amid nearby supply tightness.

There appeared to be no consensus among traders on the likely reason for the rise in lease rates, although one attributed the move in part to options-related activity.

The December contract also struggled repeatedly during the session at the pivotal $390 an ounce area, and the market's ability to close above that was viewed positively.

"The momentum on the downside already started to wane in the last two days," said one cash market source who predicted further near-term gains.

He and other traders said the market was supported by expectations of physical buying interest in the cash market at $382.50 and below, although stiff resistance was seen at $385.

The market will be watching for the release of U.S. July non-farm payroll data with analysts' average forecast calling for a gain of 111,000 versus June's 215,000. The unemployment rate was expected to rise fractionally to 5.7 percent from 5.6.

SILVER

NEW YORK: Comex silver settled higher in thin, professionally dominated activity, traders said.

Strength in the gold market was termed positive for silver, although the most-active September contract proved unable to breach nearby resistance at $5.20 an ounce, a level which capped a modest rally on Tuesday.

The market was nevertheless thought to have found good near-term support above $5.00.

September silver settled 5.5 cents higher at $5.17 an ounce, traded narrowly between $5.195 and $5.145, a range set by midday. A low of $5.12 was hit on ACCESS trade overnight. Volume was very light at an estimated 9,000 lots versus Wednesday's official 10,676.

Several traders saw the market locked in a $5.20 to $5.11 range for the near term.

The precious metal markets will be watching for the release of U.S. July non-farm payroll data with analysts' average forecast calling for a gain of 111,000 jobs versus June's 215,000. The unemployment rate was expected to rise fractionally to 5.7 percent from 5.6.

PLATINUM

NEW YORK: NYMEX platinum settled firmer after a day of thin, rangebound dealings, traders said.

Gains in the gold market were termed supportive for platinum today, while a consensus appeared to be building that the precious metals selloff of the past week had ended and the markets were now poised to probe higher.

October platinum settled $1.20 higher at $423.10 an ounce, traded narrowly between $423.90 and $422.20, a range set early. Volume was estimated at 2,959 lots versus Wednesday's official 3,059.

September palladium went out unchanged at $153.20 an ounce. The market will be watching for the release of U.S. July non-farm payrolls data, with analysts' average forecast calling for a gain of 111,000 jobs versus June's 215,000. The unemployment rate was expected to rise fractionally to 5.7 percent from 5.6.-Reuter