NEW YORK, Nov 26 (Reuters) - Trade buying lifted COMEX gold Wednesday morning, even as upbeat U.S. economic data continued spilling out, with traders loathe to keep selling before a holiday weekend with the dollar still on the ropes.
Taking its cues from a weaker greenback, gold bucked reports showing October durable goods orders rose 8.1 percent, the biggest monthly jump since July 2002, while a drop in weekly unemployment claims to their lowest in almost 2 years nailed the lid down on recent fears of a jobless recovery.
February gold at 9:25 a.m. EST (1425 GMT) was up $2.20 at $394.60 an ounce, trading from $391.80 to $395.00. Spot gold was at $393.25/95, up from the close at $390.85/1.55. London's morning fix was $392.00.
"The market didn't react to anything," said a floor broker, adding that most players were more focused on the four-day weekend. Another said two bullion banks were buying futures.
U.S. financial markets will be closed Thursday for Thanksgiving and New York commodity exchanges will remain closed on Friday, reopening Monday.
Tuesday's report that third-quarter gross domestic product grew at an 8.3 percent annual rate briefly took the wind out of gold's sails, which had been filled this year by worries about economic recovery.
The contract hit an 8-day low Tuesday at $390.50, having retreated from last week's 7-1/2-year high at $401.80.
If the conversation switches to overheated growth, that could fan interest in gold as an inflation hedge.
Although funds have taken some profits, they have basically stood by gold in hopes of a break above $400 an ounce.
The weak dollar has fueled the overseas investor demand for bullion behind this year's bull market on COMEX and in London. But in many foreign currencies, gold prices remain weak.
The euro rose to $1.1868/71 early Wednesday from $1.1784/89 at the close. It hit a lifetime high last week at $1.1977.
"Gold is not rallying in all currencies and is stalled in USD (U.S. dollar) terms. This is not a short-term environment conducive to a significant directional trade," wrote Gregory Weldon, publisher of Weldon's Metal Monitor.
March silver was 6.0 cents higher at $5.385 an ounce, trading from $5.31 to $5.41. That brings it in reach of the Nov 17 3-1/2-year high at $5.45 an ounce.
Spot silver was quoted at $5.35/37, up from $5.29/31 late Tuesday and Wednesday's fix at $5.30.
At the NYMEX, January platinum was closing in on recent highs, standing $11.3 higher at $769.00 an ounce. Spot platinum fetched $763.00/770.00.
March palladium was 40 cents easier at $190.75 an ounce. Spot was at $186.00/191.00.