Money and Metals

Market Watch has some trading numbers. "Gold futures closed below $600 an ounce Tuesday, reflecting traders' wariness about the metal's lofty level, but silver inched higher with concerns about Iran's nuclear activities helping to fuel buying. 'Gold is testing the waters around $600, but with oil near $70 and strong demand out of Asia, gold will have difficulty moving much lower,' Peter Spina said."

"Gold for June delivery climbed as high as $605.60 an ounce on the New York Mercantile Exchange after tapping $608.40 in electronic dealings. The contract closed Tuesday at $599.40 an ounce, down $2.40 for the session. May silver closed up 4 cents at $12.60 an ounce after reaching $13.01 an ounce overnight. July platinum eased $11.30 to finish at $1,094.60 an ounce, after touching a record $1,111 overnight, on concerns about a furnace shutdown at Lonmin's Marikana operations caused by a leak. Lonmin is the world's third-biggest platinum producer. June palladium fell $13.85 to close at $346 an ounce."

"On Monday, gold futures closed above $600 after the New Yorker magazine reported that the United States is stepping up preparations for a possible air attack on Iranian nuclear facilities, which may involve the use of nuclear weapons against fortified underground sites. The Washington Post carried a similar weekend report. 'Iran has moved to the front pages of investors' attention, said Spina. 'It is clear Iran is provoking the United States.' This much 'is reflected in the price of gold where investors seek refuge in time of instability.'"

"Iran's hard-line president said Tuesday that the country 'has joined the club of nuclear countries' by successfully enriching uranium for the first time. 'I formally declare that Iran has joined the club of nuclear countries,' he said. The crowd broke into cheers of 'Allahu akbar,' or 'God is great.' As part of the ceremony, costumed dancers performed on the stage, holding aloft vials of raw uranium and also chanting 'Allahu akbar.'"

And there is a central bank talking about selling gold. "The chief of the Central Bank of France said that the bank has sold 161 tonnes of gold in 2005, for a value of $2.30 billion, Reuters reported. Bank of France Governor Christian Noyer declined to comment on the pace at which the central bank would sell gold in 2006, saying only it would depend on market conditions and take place in conformity with an accord by central banks."

"The Central Banks' Gold Agreement, which came into force in September 2004, bound banks to cap their total sales at 2,500 tonnes in the 2004-2009 period, compared with 2,000 tonnes in the previous five years.'

"The official said that the central bank would use revenues generated from its gold sales to invest in foreign exchange."