FXS: PRECIOUS METALS: NY Gold Seen Down $27, Silver Down 13 Cents
PRECIOUS METALS: NY Gold Seen Down $27, Silver Down 13 Cents
DOW JONES NEWSWIRES
December gold futures are expected to open floor trading in New York around $27 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 13 cents an ounce.
"Relentless overseas selling from funds liquidating continues as gold broke through technicals and hedgers increase pressure as well, fearing they lost the chance to sell to lock in profits," said George Gero, vice president with RBC Capital Markets Global Futures.
At 7:55 a.m. EDT, spot gold was trading down $23.05 to $707.20.
In other markets that have the potential to affect metals in the short term, the euro is down to $1.2818 from $1.2856 late Wednesday afternoon. In screen trading ahead of the pit open, the December S&P 500 futures are down 13.80 points to 889. December crude oil is up $1.17 to $67.92 a barrel in overnight activity.
The lone U.S. government economic report on the calendar is initial jobless claims at 8:30 a.m. EDT (1230 GMT). They are forecast to inch up 2,000 to 463,000.
In New York Wednesday, gold futures declined sharply, breaking two key chart points to the downside. Participants fled commodities and equities for cash as risk aversion spiraled, leading to a markedly stronger U.S. dollar, as lower oil prices also pressured the metal, analysts said. December gold fell $32.80, or 4.2%, to settle at $735.20 an ounce, while December silver lost 61.5 cents to $9.460.
Comex gold warehouse stocks were steady at 8,559,523 ounces Wednesday, while silver stocks were down 771,864 ounces at 132,132,321 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
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