DJ PRECIOUS METALS: NY Gold Seen Down $2, Silver Down 2 Cents
DOW JONES NEWSWIRES
December gold futures are expected to open floor trading in New York around
$2 an ounce lower 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 down 2 cents an ounce.
Spot gold initially rose overnight when bargain hunting emerged in Asia amid
ideas that the liquidation sell-off late Friday was overdone and the financial
markets are still in a confidence crisis. The metal has since given up much of
the gains on a day when global stock bourses soared after monetary authorities
around the world announced measures to restore confidence in the global
financial system.
The December S&P 500 futures are up 42.90 points to 934.90 in overnight
screen trading ahead of the open on Wall Street.
At 7:58 a.m. EDT, spot gold was trading up $6.15 to $854.80.
The euro is up to $1.3627 from $1.3413 late Friday afternoon. November crude
oil is up $3.61 to $81.31 a barrel.
No major U.S. economic reports are scheduled for release Monday on the
Columbus Day holiday.
Reports this week include the fiscal 2008 budget balance on Tuesday, then a
full slate Wednesday that includes the Producer Price Index, retail sales, New
York Fed manufacturing survey and Federal Reserve's Beige Book. Thursday brings
weekly jobless claims, the Consumer Price Index, industrial production and
Philadelphia Fed manufacturing index, followed by housing starts and University
of Michigan consumer-sentiment index on Friday.
In New York on Friday, gold closed lower in a highly volatile session Friday
in which they first climbed nearly $50 an ounce in the overnight session as
global equities sold off, then sold off on long liquidation with other
commodities. The December contract settled with a loss of $27.50 to $859 an
ounce. December silver closed $1.275 lower at $10.60 an ounce.
Comex gold warehouse stocks were down 1,401 ounces at 8,598,189 ounces
Friday, while silver stocks were down 720,921 ounces at 134,162,116 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
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