Gold News & Info

Source: Reuters

New York— Analysts say a wide U.S. trade gap is normally a bearish signal for the dollar because the currency is being exchanged for foreign currency that is used to buy foreign goods, like Japanese autos.

The buck had been firmer previously from a strong U.S. employment report released on Friday.

By midafternoon, the euro was trading virtually unchanged on the day at $1.2868.

A lower U.S. currency typically boosts dollar-denominated metals like gold by making it cheaper for traders holding foreign currencies.

Earlier, gold prices were bid up overseas on news that several workers from South Africa's Gold Fields Ltd. were trapped deep underground at the firm's biggest mine after an earthquake hit the area.

One miner died and four remained trapped at Driefontein mine's number two shaft, while five miners were rescued, a spokesman said. Rescuers were digging through the fallen rock to get at the other men still trapped underground.

Spot gold last was quoted at $427.00/427.50 an ounce, up from Monday's late New York quote at $425.80/6.55. Tuesday's afternoon fix in London was at $427.40.

Silver, meanwhile, posted gains on supply tightness in the nearby contract.

"Silver is rallying on some physical tightness, but it failed to break out big to the upside today," said a floor trader.

COMEX July silver rose 3.5 cents to end at $7.115 an ounce, after dealing from $7.04 to $7.175.

Pioneer's Meyers said he felt silver could rally up toward $7.40 if it was able to vault $7.20 initial resistance.

Spot silver fetched $7.09/7.11, compared with $7.04/07 previously. The fix was at $7.06.

On the board at NYMEX, July platinum was up $1.30 at $879.90. Spot platinum changed hands at $876/880.

June palladium (settled unchanged at $195.65 an ounce. Spot palladium was quoted at $192/195.