NEW YORK, Feb 13 (Reuters) - COMEX gold rose Friday morning after U.S. international trade data suggested the dollar's fall had yet to improve the import-export gap as Federal Reserve Chairman Alan Greenspan said it would early this week.
Gold followed the euro higher after the Commerce Department said Friday that the December trade deficit widened nearly 11 percent to a near record $42.5 billion, well above the $40 billion expected by economists.
Some traders got squeezed after selling into gold's rally the last two days, not wanting to be caught short before business wraps up early for the U.S. Presidents Day long holiday weekend. New York metals futures trade closes around midday.
April gold at 9:26 a.m. EST (1426 GMT) was up $2.20 at $416.30 an ounce, recovering from early slippage as it moved from $412.40 to $416.90, its highest since Jan 15.
Spot gold rose to $415.30/5.80 from $411.75/2.50 late Tuesday. London's morning fix was $412.10.
"It's the old story with the weak dollar and strength in the euro. It looks like the euro is going to work toward the $1.30 area again," said Donald Tierney of Pell Brothers Futures.
"We're going into a three-day weekend and London is open on Monday. So a lot of people that are short the market don't want to come in Tuesday and find higher prices," he said.
Gold rallied Wednesday and Thursday after Greenspan told U.S. lawmakers the weak dollar could help narrow the yawning U.S. current account deficit.
Even though he said interest rates could not stay at 45-year lows indefinitely with the economy expanding, he suggested there was no rush to raise rates because inflation remains tame.
This contributed to the euro's rise to $1.2879 by Friday morning, which was just a hair below its record high from last month at $1.2898. It was last quoted at $1.2860/63.
Gold topped on Jan. 6 at $432.30 as the dollar skidded. The safe-haven metal retreated to $395 an ounce about two weeks ago on profit-taking by hedge-fund types.
"The euro's going to $1.40 and gold is probably going to trade $450. Who knows?" said one bullion trader. "They love this stuff."
COMEX March silver was up 6.0 cents at $6.68 an ounce, trading in a $6.565 to $6.685 range. Spot silver rose to $6.66/68 from $6.59/61 late Thursday. It fixed at $6.5625 in London.
Tierney said sell orders on the way up in silver and gold were thinner than usual, especially in gold.
NYMEX April platinum was $3.70 higher at $851.00 an ounce. Spot was last at $851.00/856.00.
March palladium was up $1.15 at $249.50 an ounce. Spot traded at $243.00/248.00.