DJ PRECIOUS METALS: NY Gold Seen Up $27, Silver Up 52 Cents
DOW JONES NEWSWIRES
December gold futures are expected to open floor trading in New York around
$27 an ounce higher Friday, 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 52 cents an ounce.
Much of the strength in gold occurred in after-hours screen trading Thursday
when the Dow industrials roared back from 300 points lower to finish with a
gain of 552.59 points at 8835.25. Traders have been looking to stocks as they
try to assess the potential for deflation, which tends to hurt gold.
At 7:53 a.m. EST, spot gold was trading up 35 cents to $734.90.
In other markets that have the potential to affect metals in the short term,
the euro is down to $1.2712 from $1.2775 late Thursday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are down 9.60
points to 899.40. December crude oil is up 56 cents to $58.80 a barrel in
overnight activity.
U.S. economic data Friday include:
- October import prices at 8:30 a.m. EST (1330 GMT), forecast to fall 4%;
- October retail sales at 8:30 a.m. EST (1330 GMT), expected to be down 2.4%,
or down 1.6% when excluding autos;
- University of Michigan consumer-sentiment index at 9:55 a.m. EST (1455
GMT), forecast to dip to 55 from 57.6 at the end of October; and
- September business inventories at 10 a.m. (1500 GMT), forecast to dip 0.1%.
In New York Thursday, gold and silver futures sank with equities and likewise
bounced from their weakest levels with stocks, analysts said. Much of the
selling was described as long liquidation, with some sell stops hit in both.
December gold fell $13.30 to $705 an ounce, while December silver lost 68 cents
to $8.80.
Comex gold warehouse stocks were down 200,249 ounces at 8,171,788 ounces
Thursday, while silver stocks were steady at 130,204,084 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
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