FXS: PRECIOUS METALS: NY Gold Seen Up $26, Silver Up 6 Cents
PRECIOUS METALS: NY Gold Seen Up $26, Silver Up 6 Cents
DOW JONES NEWSWIRES
December gold futures are expected to open floor trading in New York about $26 an ounce higher Monday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. December silver is expected to be up 6 cents an ounce.
One London-based trader tied the sharp jump in gold largely to short covering. Another pointed to spreading economic fears and worries about banks in Europe, prompting a search for physical assets. The metal rose despite moves in other markets that often pressure gold, such as weaker crude oil prices and a stronger dollar.
At 7:56 a.m. EDT, spot gold was trading $19.20 higher at $856 an ounce.
In other markets, the euro declined to $1.3558 from late Friday's $1.3774. In screen trading ahead of the pit open, the December S&P 500 futures are down 24.60 points at 1,083.90. November crude oil is down $3.94 at $89.94 a barrel in overnight activity.
The lone U.S. economic report on the calendar for Monday is the Conference Board's employment-trends index at 10 a.m. EDT (1400 GMT).
Economic events Tuesday include Federal Reserve Chairman Ben Bernanke speaking on the economy, plus the release of the Sept. 16 minutes of the Federal Open Market Committee. The pending-home sales index is set for Wednesday, wholesale trade inventories and jobless claims on Thursday, and the trade balance and import prices on Friday.
In New York Friday, gold futures closed lower minutes after the U.S. House of Representatives approved a bank-bailout plan, then stabilized at lower levels in after-hours screen trading, analysts said. December gold settled $11.10 lower at $833.20 an ounce. Meanwhile, December silver rose 20.5 cents to $11.325 although it pared its earlier gain.
Comex gold warehouse stocks were steady at 8,596,029 ounces Friday, while silver stocks were steady at 136,535,496 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
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