DJ PRECIOUS METALS: NY Gold Seen Up $3, Silver Up 15 Cents
By Matt Whittaker
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--December gold futures are expected to open floor
trading in New York around $3 an ounce higher 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 up about 15 cents an
ounce.
At 8:02 a.m. EST, spot gold was trading $2.55 lower at $760 an ounce. In
overnight activity, spot gold fell slightly in Europe Wednesday after hefty
gains in the previous session, as the U.S. dollar strengthened against the euro
and the U.S. presidential election results were being digested in the broader
markets.
The market will continue to watch dollar moves and equities for direction,
traders and analysts said, and gold could get a boost from falling Libor rates
that may put put a limit to the heavy deleveraging that has been ravaging the
commodity markets.
In other markets with the potential to have an impact on metals in the short
term, the euro is down to $1.2909 from $1.2980 late Tuesday afternoon. In
screen trading ahead of the pit open, the December S&P 500 futures are down
12.60 points at 990.60. December crude is down $1.63 at $68.90 in overnight
activity.
U.S. economic reports on Wednesday include:
- October ADP National Employment Report at 8:15 a.m. EST (1315 GMT), with
the private payrolls forecast expected down 100,000;
- October ISM Non-Manufacturing Composite Index at 10 a.m. EST (1500 GMT),
expected at 47;
- U.S. Energy Deparment oil inventories at 10:35 a.m. EST (1535 GMT), with
crude oil stocks expected up 1.2 million.
In New York Tuesday, gold futures rallied on support from a weaker U.S.
dollar, firmer equities and rising crude oil prices, but volumes were thin as
U.S. voting continued, magnifying the metal's moves higher. December gold rose
$30.50, or nearly 4.2%, to settle at $757.30 an ounce. December silver rose 38
cents, or nearly 3.9%, to settle at $10.13 an ounce.
Comex gold warehouse stocks were unchanged at 8,560,830 ounces Wednesday,
while silver stocks were up 199,834 ounces at 130,502,690 ounces.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
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