DJ PRECIOUS METALS: NY Gold Seen Down $14, Silver Down 30 Cents
DOW JONES NEWSWIRES
December gold futures are expected to open floor trading in New York around
$14 an ounce lower Wednesday, 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 30 cents an ounce.
Gold continued its recent slide overnight in reaction to the stronger U.S.
dollar, London-based traders said. The next key support is last month's low,
which was $739.80 for the December futures.
At 7:53 a.m. EDT, spot gold was trading $18.25 lower at $753.55.
In other markets that have the potential to impact metals in the short term,
the euro has fallen to $1.2860 from $1.3063 late Tuesday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are down 27.20
points at 932.10. December crude oil is down $2.62 at $69.56 a barrel in
overnight activity.
No major U.S. government economic reports are on the calendar for Wednesday,
although weekly oil-inventory data is due at 10:35 a.m. EDT (1435 GMT). This
has the potential to affect energy futures, which often lead metals.
In New York Tuesday, continued strength in the U.S. dollar pressured gold
futures as some of the recent long liquidation continued, analysts said.
However, silver managed a gain on short covering amid reports of a tightening
market in London. December gold fell $22 to $768 an ounce, while December
silver added 38.5 cents to $10.075.
Comex gold warehouse stocks were down 5,215 ounces at 8,560,022 ounces
Tuesday, while silver stocks were down 182,272 ounces at 132,904,185 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
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