DJ PRECIOUS METALS: NY Gold Seen Near Steady, Silver Dn 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 flat Monday, 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 4 cents an ounce.
In overnight activity, spot gold was trading up from last week's close moving
in line with the euro against the U.S. dollar, and traders and analysts said
the precious metal is expected to continue moving in a wide range.
However, they warned the metal has become heavy with a large number of short
positions, or bets prices will fall, therefore the metal is particularly
vulnerable to volatile bounces higher.
U.S. economic reports on Monday include:
- November New York Fed Empire State Survey at 8:30 a.m. EST (1330 GMT), with
the manufacturing index expected -27;
- October industrial production at 9:15 a.m. EST (1415 GMT), with industrial
production expected +0.4% and capacity utilization expected 76.7.
In New York Friday, gold futures finished sharply higher on a combination of
short covering, fund buying and the late Thursday rally in equities, traders
and analysts said.
Some buying also was encouraged by the market's ability to hold right around
the key $700 area during the previous day's decline, they added. December gold
settled $37.50 higher at $742.50 an ounce. December silver rose 69 cents to
$9.49.
Comex gold warehouse stocks were up 4,900 ounces at 8,176,688 ounces Friday,
while silver stocks were unchanged at 130,204,084 ounces.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
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