DJ PRECIOUS METALS: NY Gold Seen Down $3, Silver Down 3 Cents
NEW YORK (Dow Jones)-December gold futures are expected to open floor trading
in New York around $3 an ounce lower Thursday, 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 about 3 cents an ounce.
In overnight activity, spot gold edged closer to the record high of $1,032.35
a troy ounce, rising to a fresh 18-month high on dollar weakness and heightened
risk appetite.
Traders said little stands in the way of a rally above $1,030 in the coming
days, as scrap selling has been light and few investors want to short gold.
In recent trading, spot gold was up $1.97 at $1,016.17. The euro was down at
$1.4719 compared with $1.4729 late Wednesday in New York. In screen trading
ahead of the pit open, the December S&P 500 futures were up half a point.
October crude was down 22 cents in overnight activity.
U.S. economic reports on Thursday include:
-- August housing starts at 8:30 a.m. EDT (1230 GMT), with total starts
expected up 3.3% at 600,000;
-- Sept. 12 jobless claims at 8:30 a.m. EDT (1230 GMT), with weekly claims
expected up 13,000 at 563,000;
-- September Philadelphia Fed Manufacturing Index at 10 a.m. EDT (1400 GMT),
with business activity expected at 8.
In New York Wednesday, nearby gold futures extended their record high above
$1,000 an ounce and the most-active contract pushed toward its own all-time
peak, supported by continued U.S. dollar weakness and technical momentum.
Inflation-hedge buying on lingering enthusiasm following Tuesday's comments
by Federal Reserve Chairman Ben Bernanke that the recession is likely over also
boosted gold. Participants were selling the U.S. dollar and buying the metal in
anticipation of higher consumer and producer prices down the road.
December gold rose $13.90 to settle at $1,020.20 an ounce, its fourth
consecutive close in four-digit territory. December silver rose 43 cents to
settle at $17.43 an ounce.
Comex gold warehouse stocks were up 37,468 ounces at 9,249,018 ounces
Wednesday, while silver stocks were up 399,818 ounces at 117,786,306 ounces.
