DJ PRECIOUS METALS: NY Gold Seen Up $28, Silver Up 57 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 $28 an ounce higher Monday, based on electronic
activity ahead of the pit session at the Comex division of the New York
Mercantile Exchange. March silver is expected to be up about 57 cents an ounce.
At 7:56 a.m. EST, spot gold was trading up $14.58 to $815.05. In overnight
activity, spot gold recovered and rallied to a one-month high on a mix of
fund-buying and short-covering, traders said. Physical selling in Asia drove
gold prices lower, but a larger buyer in Comex gold pushed prices higher and
triggered short-covering. Dollar weakness and gains in global equity markets
accompanied the move.
In other markets that have the potential to affect metals in the short term,
the euro is up to $1.2760 from $1.2586 late Friday afternoon. In screen trading
ahead of the pit open, the December S&P 500 futures are up 22.30 points to
814.30. January crude is up $1.69 to $51.62 in overnight activity.
U.S. economic reports on Monday include October existing home sales at 10
a.m. EST (1500 GMT), with total sales expected down 2.9% at 5.03 million.
In New York Friday, gold futures ended sharply higher as safe-haven buying
amid spooked markets sent it past $800 an ounce. The commodity also found
support as participants bought back previously sold positions after options
rolled into futures contracts. Traders and investors also added fresh long
positions - which anticipate further price increases - after December gold
options expired Thursday. December gold rose $43.10, or more than 5.7%, to
settle at $791.80 an ounce. March silver rose 45.6 cents, or more than 5%, to
settle at $9.505 an ounce.
Comex gold warehouse stocks were unchanged at 8,108,878 ounces Friday, while
silver stocks were unchanged at 128,649,234 ounces.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
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