Friday, July 06, 2007


Gold Is Tracking The Dollar

Reuters reports on the markets "Gold erased early losses to trade higher on Friday as the dollar's rise following a U.S. strong jobs report stalled, and robust buying by physical buyers could support the precious metal in the near term, dealers said. Spot gold fell as low as $645 an ounce, the lowest since June 28, before rising to $654.30/655.10 by 3:31 p.m. EDT (1931 GMT), against $649.30/$650.10 in New York late on Thursday."

"Most-active gold for August delivery on the COMEX division of the New York Mercantile Exchange settled up $4.20 at $654.80 an ounce, dealing between $646.70 and $668.50. 'Gold is tracking the dollar. It moved a bit lower after the payrolls data, but it looks that there is still support at $646,' a European precious metals trader said."

"Spot platinum rose as high as $1,291 an ounce and was last quoted at $1,290/1,297 an ounce, against $1,288/$1,292 in late New York trade on Thursday."

"The silver market was supported by the news about Mexican miners' labor actions in a protest over safety conditions and a long-running power struggle in the union. Silver was at $12.68/12.73 an ounce, up from the late Thursday quote of $12.48/12.53 in the U.S. market, while palladium fell to $359.50/363.50 an ounce from $364/368, its previous finish in the U.S. market."

From MarketWatch. "'The combination of a weak U.S. currency and oil near $73 is a powerful combination to drive gold higher, among other factors at work,' said Peter Spina, an analyst at"

"Gold for August delivery closed up $4.20 at $654.80 an ounce on the New York Mercantile Exchange. The contract lost a total of $8.60 an ounce in the past two trading sessions, but it finished the week $3.90 above the $650.90 level at which it closed a week ago."

"'The strength below $650 is enormous,' said Julian Phillips, an analyst at 'The market mood has been turning for the last two weeks, so I expect rising bottoms from now on,' he said."

"And if gold 'breaks $660 it may well run quite a way,' he wrote."

" On the equities side, metals and mining stocks closed higher, extending strength from the previous session. Late Thursday, Newmont said it's eliminating its entire gold hedge position, 1.85 million ounces, and plans to discontinue its merchant banking segment."

"The Denver-based gold producer also said, among other things, that during June it spent $578 million to eliminate its entire price-capped forward sales contracts."

Comments: Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?