Thursday May 29 12:26 PM EDT
NY precious metals remain mixed at midday
NEW YORK, May 29 (Reuter) - New York precious metals futures remained mixed at midday on moderate volume, with gold still getting some support from uncertainty surrounding the German government's plan to revalue Bundesbank reserves.
Meanwhile, palladium saw heavy June/September switching activity.
``The Bundesbank/German government dispute is probably good for the gold market longer term,'' North American Equity Services trader John Geraghty said.
``If Germany is going to cook its books by keeping and revaluing its gold reserves, then that may create a precedent that will allow other European central banks to avoid selling gold reserves in the market also, removing one bearish factor from the gold market,'' he said
``Plus the uncertainty the dispute is creating about EMU (European monetary union) in general is supportive for precious metals in general,'' he said.
COMEX August gold, now the active contract, was down $0.40 at $347.20 an ounce, but back months were mostly higher.
Gold's open interest jumped 3,239 lots Wednesday to 162,050 contracts, with June open interest falling 15,598 lots and August open interest up 16,631, along with rises in open interest in other back months also.
Friday is first notice day for COMEX June gold.
In the bullion market spot gold was quoted at $343.70 against the London Thursday afternoon fix of $343.90.
Wednesday, the Bundesbank said it opposed the German government's plan to revalue its gold and foreign currency reserves to help meet the fiscal criteria for EMU.
But Thursday, German finance minister Theo Waigel defended the move and said the government would go ahead with the plan, despite mounting criticism from the Bundesbank, the German parliamentary opposition and the media.
COMEX July silver was up 4.0 cents at $4.770, traded $4.71 to $4.79.
COMEX silver open interest rose 1,134 contracts Wednesday to 90,611 contracts.
NYMEX July platinum was down $2.00 at $408.50 after setting a new contract high of $420.50 early.
NYMEX June palladium was down $13.65 at $189.00, although now-active September was up $8.75 at $184.75, reflecting June/September contract rollovers.
Friday is first notice day for June palladium.
In the spot market, platinum was fixed in London today at $417.40, its highest since Feb 21, 1996. Palladium was fixed at an all-time high of $196.50.
Analysts said there was still doubt in the market that the Russians would actually begin delivering their 1997 exports of platinum group metals at the end of May or early June.
In addition, although the strike at Amplats Rustenburg mine in South Africa ended Wednesday, some of the labor problems there could well resurface, analysts added.
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