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Gold prices stay firmer

NEW YORK: Comex gold was firmer at midday, receiving only a modest lift in quiet trade from this morning's sharp decline in the stock market, traders said.

The Dow Industrials were down more than 140 points at midday, while the bond market extended steep losses incurred Friday after the release of strong U.S. jobs data. The stock market and precious metal markets were closed Friday.

At 1240 EDT, June gold was up $1.00 at $398.60 an ounce, traded from $398.80, its highest in over one week, to $397.10.

Dealers quoted bullion at $395.50/$396.00.

Also supportive for gold was a jump in the KR-CRB index of commodity futures, which rose 1.36 to a fresh 7-1/2 year high of 256.08 on rallies in the grain and petroleum sectors.

Traders noted buying from locals and small funds helping to lift gold early, although trade selling emerged and the market briefly retraced, filling a gap formed on the charts by this morning's strong opening.

NYMEX platinum was higher at midday, receiving a boost from firmness in the gold and silver markets that traders attributed to weakness in stocks and bonds.

At 1255 EDT, July platinum was up $2.20 at $412.00 an ounce, traded from $412.50, its highest level in over one week, and $409.80.

June palladium was up $1.25 at $142.50 an ounce.

COMEX silver remained higher at midday, receiving a modest lift from weakness in the stock and bond markets after Friday's strong U.S. jobs data, traders said.

A brief retracement this morning was halted just under expected support around $5.48 an ounce in the May contract.

At 1300 EDT, May silver was up 9.0 cents at $5.525 an ounce, traded from $5.53 to $5.475.-Reuter