According to the London Bullion Market Association July 21 (Bloomberg), Gold trading in London fell in June as average daily volumes fell 16 percent. Silver trading dropped 19 percent.

An average of 20.8 million ounces of gold traded daily, down from 24.7 million in May, the LBMA said today in an e- mailed statement. Silver turnover fell to a daily average of 85 million ounces, from 104.3 million ounces.

Gold prices climbed 2.1 percent in June in London to $1,242.25 an ounce, a third monthly increase. The metal reached a record $1,265.30 on June 21. Silver added 0.3 percent last month to $18.615 an ounce.

It was analysted that expect platinum and palladium, used in catalytic converters, to rise further, after gaining 14 percent and 28 percent respectively since late December, but also warn of a correction on concerns over the still ailing auto sector.

The platinum group metals (PGM) rise and the dollar’s dip against a basket of currencies lifted gold, but analysts said fresh impetus was needed to push bullion higher as there was little support from currency markets with the euro under pressure.

Spot platinum rose as high as $1,626.00 per ounce, its highest since August 2008, and was at $1,612 an ounce by 2:52 p.m. EST, up about 1 percent on the day.

Spot palladium rose as high as $459 an ounce, its highest since early July 2008, and stood at $457.50 in late trading, up about 1.1 percent from Friday.

“We saw the opening of the U.S. ETFs this month, that’s proved relatively popular so far. We’ve seen a little bit of switching from gold to PGMs overall, so that’s driven the price,” said Commerzbank trader Rory McVeigh.

A U.S. subsidiary of London’s ETF Securities launched the products last Friday, and uptake has been healthy. About 170,000 ounces of metals were added to the products in the first two trading sessions.

But McVeigh said the lack of a solid recovery in the car industry could mean once the investment demand is saturated, both metals could be heading for a sharp correction.

“When it’s investment driven, the exit could be a lot harsher than the rise,” he said, but he did not rule out a rise to $1,800 an ounce for platinum in the short term.

Gold prices were up slightly but rises were limited as the euro remained under pressure due to financial problems in Greece and concerns over the potential impact on the single currency.

Investors have also kept to the sidelines because New York markets were closed on Monday for Martin Luther King Jr. Day.

Spot gold inched up to $1,132.50 per ounce compared with $1,129.90 an ounce late in New York on Friday. U.S. gold futures for February delivery were at $1,134 per ounce, up 0.25 percent.

“Until we get fresh momentum based on an event or data, gold is going to continue to struggle as long as the dollar is being preferred versus the euro,” said Tom Kendall, precious metals strategist at Mitsubishi.

Spot gold hit a five-week high of $1,161.50 on January 11. Gold has fallen 2.5 percent since then, as a rise in the greenback hurt investor sentiment.

The high gold price has hurt Italian jewellers, who are now turning to alternative materials such as leather, textiles and ceramics to offset prices, an industry executive at the Vicenza trade fair said.

Holdings by the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.914 tonnes to 1,112.836 tonnes on Jan 15.

Silver prices were at $18.61 an ounce versus $18.36 an ounce late in New York on Friday.

U.S. gold futures rose toward $1,020 an ounce on Tuesday, gaining 1 percent as a sharp deterioration of the dollar’s value triggered investment buying in gold as a currency hedge.

GOLD

* December gold GCZ9 settled up $10.60, or 1.1 percent, at $1,015.50 an ounce on the COMEX division of New York Mercantile Exchange.

* Ranged from $1,004.20 to $1,021.50.

* Gold boosted by a tumbling dollar. Deteriorating sentiment toward the U.S. currency pushed FX dealers to sell it ahead of a Federal Reserve meeting and Group of 20 summit this week. U.S. dollar index .DXY fell almost 1 percent against a basket of major currencies. [USD/]

* Gold’s rally primarily was driven by its inverse relationship with the U.S. dollar – Frank Holmes, chief executive officer and chief investment officer of U.S. Global Investors, a commodities-focused fund manager.

* Gold could still go higher in deflationary economy because of currency devaluation as a result of deficit spending and a strong resolve to keep interest rates negative – Holmes.

* Gold, which is priced in the U.S. currency, usually goes up with a falling greenback. Gold is also seen as an alternative to holding dollar-denominated assets and other major currencies.

* Gold’s status as an investment continues to rise. The world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust GLD, said its holdings stood at 1,101.735 tonnes as of Sept. 21, up from 1,086.479 tonnes the previous day.

* Lack of gold jewelry demand, however, could limit further gains – traders.

* India’s gold imports in 2009 may fall to their lowest level since trade was liberalized 12 years ago as high prices have put off buyers in the world’s biggest market for the metal – top Indian importer. [ID:nBOM512227]

* Worries about imminent shorter-term traders also dragged prices lower, as trade data showed that speculators held a record net long position in U.S. gold futures.

* U.S. crude futures rebounded above $71 per barrel on improved sentiment for demand and a weaker dollar. [O/R]

* Gold-to-oil ratio at 14.21, down from the previous session’s 14.41.

* COMEX estimated final volume at 96,316 lots.

* Spot gold XAU= at $1,013.25 at 2:32 p.m. EDT (1832 GMT) versus $1,002.55, which was the previous session’s late New York quote.

* London afternoon gold fix XAUFIX= was at $1,014 an ounce.

SILVER

* December silver SIZ9 finished up 23.5 cents, or 1.4 percent, at $17.115 an ounce, up with gold.

* Range from $16.830 to $17.345.

* COMEX estimated final volume at 21,997 lots.

* Spot silver XAG= was at $17.07 versus its previous finish of 16.80 an ounce.

* London silver fix XAGFIX= at $17.24 an ounce.

PLATINUM

* October platinum PLV9 ended up $17, or 1.3 percent, at $1,339.20 an ounce on the back of stronger global equities markets.

* Spot platinum XPT= was at $1,329 compared with its previous finish of $1,315.50.

PALLADIUM

* December palladium PAZ9 closed up $3.25, or 1.1 percent, at $302.40 an ounce.

* Spot palladium XPD= was at $300 against its previous close of $294.50.