Maple Leaf Steve
09-10-2005, 06:39 AM
NY gold ends strong, to push higher next week
Fri Sep 9, 2005 03:46 PM ET
NEW YORK, Sept 9 (Reuters) - Gold futures in New York ended higher on Friday, extending a rally that saw prices break through a key psychological level the day before.
The yellow metal was poised for more gains next week, traders said, after breaking through $450 an ounce Thursday. Strengthening demand and an upswing of technical buying should offset macro-economic factors like a pause in interest rate hikes and slippage in oil prices, they said.
"Gold is moving on its own momentum," said Paul McLeod, vice president of precious metals at Commerzbank. "Today was a consolidation day before we push up again next week."
Prices got a lift from fund buying, and possible short covering and the appearance of new longs in the market.
Fundamentals also appeared solid, with an absence of central bank selling and seasonally strong demand expected from Indian jewelry buyers and Middle East investors.
December delivery gold (GCZ5: Quote, Profile, Research) on the New York Mercantile Exchange's COMEX division settled up $2.30 at $453.00 an ounce, after trading between $453.60 and $449.70.
After the fund buying seen this week, futures stood within sight of their eight-month high reached on Aug. 12 at $455.30.
Final estimated volume totaled 43,000 lots, compared with more ample level of 70,000 on Thursday.
Spot gold ended $448.90/449.60 an ounce, just off a new high for the year of $449.40 on Thursday, and the previous late New York quote at $447.15/7.65. The late fix in London on Friday was $448.25.
Meanwhile, oil prices fell as gasoline futures plummeted on signs of slowing demand growth and expectations that refiners would delay autumn maintenance to make up for supplies shut by Hurricane Katrina.
Lower oil prices and a healthy economy generally do not support gold as investors often switch into the precious metal as an hedge against inflation.
Gold fought off pressure from U.S. data that showed soaring petroleum costs pushed U.S. import prices up sharply in August.
The Labor Department said import prices rose by 1.3 percent last month, vs. a Wall Street forecast for a 1.2 percent gain.
The data serves as one of the early warning indicators of inflation and will worry the Fed if it thinks these cost pressures will subsequently show up in consumer prices.
New York futures markets observed moments of silence for the four-year anniversary of the Sept. 11, 2001, hijacked airliner attacks on the World Trade Center.
In silver, COMEX December futures (SIZ5: Quote, Profile, Research) rose 3.7 cents to $7.065 an ounce, dealing from $7.00-7.095. Spot silver changed hands at $7.00/7.03, from $6.97/6.99 previously. The fix was at $698.50.
NYMEX October platinum (PLV5: Quote, Profile, Research) concluded at $916.40 an ounce, up $3.00 and at its highest this week since mid-August. Spot platinum finished at $911/914.
December palladium (PAZ5: Quote, Profile, Research) wrapped up at $186.40, up 5 cents. Spot stalled at $181/185.
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh1726 9_2005-09-09_19-46-55_n09564095_newsml
Fri Sep 9, 2005 03:46 PM ET
NEW YORK, Sept 9 (Reuters) - Gold futures in New York ended higher on Friday, extending a rally that saw prices break through a key psychological level the day before.
The yellow metal was poised for more gains next week, traders said, after breaking through $450 an ounce Thursday. Strengthening demand and an upswing of technical buying should offset macro-economic factors like a pause in interest rate hikes and slippage in oil prices, they said.
"Gold is moving on its own momentum," said Paul McLeod, vice president of precious metals at Commerzbank. "Today was a consolidation day before we push up again next week."
Prices got a lift from fund buying, and possible short covering and the appearance of new longs in the market.
Fundamentals also appeared solid, with an absence of central bank selling and seasonally strong demand expected from Indian jewelry buyers and Middle East investors.
December delivery gold (GCZ5: Quote, Profile, Research) on the New York Mercantile Exchange's COMEX division settled up $2.30 at $453.00 an ounce, after trading between $453.60 and $449.70.
After the fund buying seen this week, futures stood within sight of their eight-month high reached on Aug. 12 at $455.30.
Final estimated volume totaled 43,000 lots, compared with more ample level of 70,000 on Thursday.
Spot gold ended $448.90/449.60 an ounce, just off a new high for the year of $449.40 on Thursday, and the previous late New York quote at $447.15/7.65. The late fix in London on Friday was $448.25.
Meanwhile, oil prices fell as gasoline futures plummeted on signs of slowing demand growth and expectations that refiners would delay autumn maintenance to make up for supplies shut by Hurricane Katrina.
Lower oil prices and a healthy economy generally do not support gold as investors often switch into the precious metal as an hedge against inflation.
Gold fought off pressure from U.S. data that showed soaring petroleum costs pushed U.S. import prices up sharply in August.
The Labor Department said import prices rose by 1.3 percent last month, vs. a Wall Street forecast for a 1.2 percent gain.
The data serves as one of the early warning indicators of inflation and will worry the Fed if it thinks these cost pressures will subsequently show up in consumer prices.
New York futures markets observed moments of silence for the four-year anniversary of the Sept. 11, 2001, hijacked airliner attacks on the World Trade Center.
In silver, COMEX December futures (SIZ5: Quote, Profile, Research) rose 3.7 cents to $7.065 an ounce, dealing from $7.00-7.095. Spot silver changed hands at $7.00/7.03, from $6.97/6.99 previously. The fix was at $698.50.
NYMEX October platinum (PLV5: Quote, Profile, Research) concluded at $916.40 an ounce, up $3.00 and at its highest this week since mid-August. Spot platinum finished at $911/914.
December palladium (PAZ5: Quote, Profile, Research) wrapped up at $186.40, up 5 cents. Spot stalled at $181/185.
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh1726 9_2005-09-09_19-46-55_n09564095_newsml