Precious metals markets were steady and little changed on Friday as dealers stood by for the expiry of Comex traded options after the close in New York.
The options players have gold in a stranglehold at the moment, one dealer said referring to the yellow metals likely $350-$355 per ounce price bracket for the day.
Gold fixed at $353.00, just 10 cents up on Thursday afternoon and compared with a close of $352.80/$353.30.
Its a thin market this morning and there is still a lot of uncertainty about direction, one dealer said. Direction was likely to be limited ahead of the Comex option expiry but some dealers saw the price coming off a bit next week before the market gathered steam for another try on the upside.
The upside has been quite thoroughly tested this week without making much of an impression, one dealer said.
A 160.48-point drop in the Dow Jones Industrial Average on Thursday helped gold at least sustain the minor gains it has made this week It was valued at barely $350.00 on Monday.
Dealers noted liquidity was readily available and sub one per cent one month lease rates suggested most of the short positions in the market since early this year had been covered. Opinion was mixed on the level of physical support.
Physical buying is strong on the dips but not chasing it higher, one dealer said, while others emphasised the premium being commanded by high quality bars and small bars.
Silver was around a cent or two higher at $5.28/$5.30 having attracted what some dealers considered technically related fund buying on Thursday.
A golden cross has formed on silvers chart where the 50 day moving average has crossed the 200 day as both lines ascend.
It still looks pretty well capped around $5.32 and there is a problem with offers coming in at $5.30, one dealer said.
A $5.25-$5.32 range was suggested for silver but if it broke out it could run up to $5.45, a dealer said.
Platinum and palladium were steady around closing levels but some dealers felt their buying was running out of steam.
A report overnight said that US car makers had not revised palladium purchasing plans despite the markets 37 per cent rise since its low last November.
Palladium prices have held since Russias Almaz export agency said this week it would probably export for the first time this year later this month.
Palladium was down $0.50 at $151.25/$152.25 and platinum down $1.00 at $381.00/$382.00.
