* Futures volume thin as NY reopens from holiday break
* Spot bullion trading hampered by holidays in London
* US snowstorm keeps financial market activity to minimum
(Updates prices and market activity to settlement)
NEW YORK, Dec 27 (Reuters) - Gold settled barely changed in
thin volume on Monday, unscathed by China's rate hike, as the
precious metal resumed futures trading in New York after the
Christmas break.
The physical bullion market was quiet with London traders
on holiday.
U.S. gold futures' most-active contract, February <GCG1>,
settled up $2.40, or 0.2 percent, at $1,382.90 an ounce on the
COMEX metals division of the New York Mercantile Exchange after
dipping nearly 0.5 percent early in the session.
Spot gold <XAU=>, which reflects trades in bullion, was
down less than 0.1 percent by 1:45 p.m. EST (1845 GMT),
hovering at around $1383 per ounce.
Analysts said there were few leads for precious metals
investors after discounting the rate hike imposed over the
weekend by the People's Bank of China. Holidays through Tuesday
in London and a blizzard pounding New York and most of the U.S.
Northeast also kept financial market activity to a minimum.
Volume in gold futures was down 80 percent from the 30-day
average by the time COMEX settled. Comparatively, there was
more activity in platinum -- a market far smaller than gold --
as investors reacted positively to recent U.S. government
incentives for the metal used primarily for purifying exhaust
fumes from cars.
"It was a very, very quiet day with hardly any news," said
Frank McGhee, head precious metals trader at Chicago's
Integrated Brokerage Services. "China's rate hike can't even be
considered counteractive to the easing by the U.S. Fed, and
that's why gold prices are not giving up much or moving too far
from their record."
China -- the largest economy after the United States --
raised its main one-year lending and deposit rates by 25 basis
points on Saturday in the second rate hike in just over two
months to cool its runaway economy, surprising markets not with
its intent but with its timing. []
"The (gold) market had been worried about more tightening
moves from China. Now that the news is out, it almost came as a
relief," said Li Ning, an analyst at Shanghai CIFCO Futures.
Gold prices are up more than 25 percent on the year,
rallying with most other commodities in the fourth quarter as
the dollar wilted in the face of strong inflation anticipated
from a $600 billion economic stimulus rolled out by the U.S.
Federal Reserve.
February gold futures on COMEX hit a record high of
$1,432.50 an ounce and spot gold peaked at $1,430.95 in recent
weeks, only giving back gains after the dollar gained on the
euro due to lingering debt woes in euro zone nations.
McGhee said he expected gold prices to trend between a low
of $1,360-$1,370 and high of $1,420-$1,440 going into the new
year. "Nobody is really betting on a new record above $1,440 in
the first two weeks of January, but anything's possible if
nothing is done to counter the Fed easing."
The euro continued to flirt with its 200-day moving average
against the dollar, while the dollar index <.DXY> inched down
just 0.11 percent, giving bullion little direction. [].
Prices at 4:25 p.m. EST (2125 GMT)
LAST/ NET PCT YTD
CLOSE CHG CHG CHG
US gold <GCG1> 1382.90 2.40 0.2% 26.2%
US silver <SIH1> 29.255 -0.073 0.0% 73.7%
US platinum <PLF1> 1735.50 12.40 0.7% 18.0%
US palladium <PAH1> 767.10 9.00 1.2% 87.6%
Gold <XAU=> 1383.25 -1.00 -0.1% 26.2%
Silver <XAG=> 29.24 0.03 0.1% 73.6%
Platinum <XPT=> 1731.24 8.74 0.5% 18.1%
Palladium <XPD=> 766.97 13.97 1.9% 89.1%
Gold Fix <XAUFIX=> 1380.50 7.00 0.5% 25.0%
Silver Fix <XAGFIX=> 29.07 -11.00 -0.4% 71.1%
Platinum Fix <XPTFIX=> 1725.00 5.00 0.3% 17.7%
Palladium Fix <XPDFIX=> 764.00 12.00 1.6% 90.0%
(Reporting by Barani Krishnan; Editing by Lisa Shumaker and
Jim Marshall)
