December 30, 2007	Sunday	Zilhaj 19, 1428

NEW YORK, Dec 29: US gold futures rose on Friday, ending more than 1 per cent higher as a weak dollar and geopolitical tensions pushed prices toward key technical levels, traders said. Most-active gold futures for February settled up $10.90 at $842.70 an ounce on the COMEX metals division of the New York Mercantile Exchange, moving between $828.30 and $843.80, a new high since Nov. 26.

The contract has risen in five straight sessions from Dec 20, gaining $39.50, or 5 per cent.

Final gold volume on COMEX was estimated at 67,401 lots by the close, not far from the 68,943 lots estimated for Thursday.

Much of the momentum in the precious metal stemmed from global security concerns after the assassination of Pakistan opposition politician Benazir Bhutto, a key US ally.

A fresh fall in the dollar after US data showed a 9 per cent decline in new home sales last month heightened concern about the economy and sent investors after safe-haven assets.

Again, the dollar is getting smoked, forcing some short-covering in the (gold) market, said Neal Greenberg, precious metals trader at RBC Proprietary Trading in Red Bank, New Jersey.

Early in New York, the dollar was down 0.3 per cent against a basket of major currencies at 76.398. It was down 1.7 per cent on the week, on track for its worst weekly performance since late November 2006.

With the dollar under pressure and violent protests seen in Pakistan, it is likely that gold could see further safe-haven investment demand, and potentially rise to challenge this year’s high, said James Moore, a metals analyst at TheBullionDesk.com.

February gold on COMEX touched a 28-year high of $855 an ounce on Nov. 7. It then retreated to a three-week low of $780.40 on Nov. 20 before a few volatile turns brought it above $840.

I think if it breaks out past $847, convincingly, you’re going to see a straight beeline toward $887. said RBC’s Greenberg.

In the physical bullion market, the price of spot gold climbed as high as $839.80 an ounce, its highest since Nov. 26. By 3:30 p.m. EST (2030 GMT), it was trading at $837.80/838.50 per ounce, against a late Thursday quote of $824.70/825.50 in New York.

COMEX silver for March delivery firmed on the back of the advance in gold, trading up 7.70 cents to $14.895 an ounce. Spot silver was at $14.72/14.77 an ounce, compared with the late Thursday quote of $14.58/$14.63 in New York.

COMEX platinum for January was up 1.70 to $1,540.50 an ounce.Spot platinum was quoted at $1,534/$1,538, against Thursday’s $1,535/$1,536.

Platinum prices have rallied nearly 40 per cent on the year amid a tight physical market due to lower output from top producer South Africa.

COMEX palladium for March also $1.70 to $370.05 an ounce. Spot palladium fetched $363/366.---Reuters