DJ PRECIOUS METALS: NY Gold Seen Up $9, Silver Up 45 Cents
December gold futures are expected to open floor trading in New York around
$9 an ounce higher Tuesday, 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 around 45 cents stronger.
December gold peaked at $1,009.40 in overnight screen trading, its strongest
level since it was last above $1,000 back in February. December silver peaked
at $16.86, its strongest level in 13 months.
The metals were boosted as the dollar index fell to its lowest level of 2009,
overseas stock bourses remained strong and buying occurred amid fears of
potential future inflation, analysts said. Technical momentum was also cited,
with funds among the buyers.
Analysts cautioned, however, that selling in the form of profit-taking could
emerge above $1,000 as U.S. traders return from a three-day Labor Day weekend.
At 7:58 a.m. EDT, spot gold was trading up $8.90 to $1,004.50.
In other markets, the euro is up to $1.4483 from $1.4301 late Friday
afternoon and $1.4339 late Monday. In screen trading ahead of the pit open, the
December S&P 500 futures are up 11.30 points from Friday to 1,025.20. October
crude oil is up $1.82 to $69.84 a barrel in overnight activity.
On the U.S. economic front, the Conference Board is scheduled to release its
August Employment Trends Index at 10 a.m. EDT (1400 GMT). July consumer credit
is due out at 3 p.m. EDT (1900 GMT).
Other major reports this week include the Federal Reserve's Beige Book on
Wednesday, initial jobless claims and the trade balance Thursday, then import
prices, whole-sale trade inventories and the University of Michigan
consumer-sentiment index on Friday.
In New York Friday, gold futures pared profit-taking losses as the U.S.
dollar weakened. December gold lost $1 to settle at $996.70 an ounce, while
December silver lost half a cent to settle at $16.285.
Comex gold warehouse stocks were up 5 ounces at 9,173,016 ounces Friday,
while silver stocks were down 140,043 ounces at 117,655,993 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
