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Gold quiet, silver firmer

Our Bureau

MUMBAI, July 2

GOLD tracked sideways to slightly higher in quiet trading last week, but not before breaking through $290 per ounce and the 100-day moving average to peak at $292.65/oz. The yellow metal ended the week in London at the official price of $288.15/oz, a gai n of 0.8 per cent week-on-week.

Silver was stronger, largely in line with gold as fund buying saw several attempts to break above $5/oz. Prices managed to break this level and managed to hold above $5/oz bid by week-end. Silver closed at $5.02/oz, a gain of 1.3 per cent.

Although the US dollar did not weaken after the US Federal Reserve decided to hold rates steady, the market did not see a significant sell-off. Indeed, Wednesday's end-month and end-quarter options declaration on the OTC market did little to dent gold's more positive sentiment and traders saw this as a positive sign for further gains, with many still targeting $295/oz, an analyst with Macquarie Bank Ltd said.

Gold ended little changed on June 30 with trade affected ahead of the US Independence Day holidays the following week. In addition, much of the option expiry and end-quarter-related trading had been completed over the previous two days, the analyst said.

Both platinum and palladium saw volatile markets. On the back of demand in a thin market, platinum traded around 11-year highs of $580/oz. This was attributed to consumer preference to buy metal than pay high lease rates. However, the metal suffered prof it-taking on the last day. At $558/oz, platinum ended on June 30 marginally lower from the previous week. Palladium closed the week three per cent lower at $638/oz.