DJ PRECIOUS METALS: NY Gold Seen Steady, Silver Down 4 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 20 cents an ounce higher 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 4 cents
an ounce.
At 7:51 a.m., EST, spot gold was trading up $3.48 to $743.60. In overnight
activity, spot gold prices in Europe were mostly unchanged Thursday as the
market awaited expected rate cuts from the European Central Bank and Bank of
England.
The European Central Bank Thursday cut its main policy rate to 3.25% from
3.75%, a move that looked relatively restrained in comparison with a sharp rate
cut by the Bank of England.
In other markets that have the potential to impact metals in the short term,
the euro is down to $1.2820 from $1.2954 late Wednesday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are down 13.80
points to 944.20. December crude is down $1.26 to $64.04 in overnight activity.
U.S. economic reports on Thursday include:
-- Third quarter preliminary productivity and costs at 8:30 a.m., EST (1330
GMT), with non-farm productivity expected up 0.4% and unit labor costs up 3%;
-- Nov. 1 jobless claims at 8:30 a.m., EST (1330 GMT), with weekly jobless
claims expected unchanged at 479,000.
In New York Wednesday, gold futures declined on liquidation pressure as
equities and oil came down and market uncertainty eased after U.S. elections.
December gold fell $14.90, or nearly 2%, to settle at $742.40. December silver
rose 32.5 cents, or 3.2%, to settle at $10.455.
Comex gold warehouse stocks were up 4,618 ounces at 8,565,448 ounces
Wednesday, while silver stocks were down 292,930 ounces at 130,209,760 ounces.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
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