DJ PRECIOUS METALS: NY Gold Seen Down $1, Silver Down 13 Cents
February gold futures are expected to open floor trading in New York around
$1 an ounce lower Tuesday, 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 down 13 cents an ounce.
Spot metal extended Monday's dip overnight, touching a one-month low due to
pressure from a stronger dollar and weaker crude oil, London-based analysts
said.
At 7:57 a.m., EST, spot gold was trading down 55 cents to $820.50.
In other markets that have the potential to impact metals in the short term,
the euro is down to $1.3282 from $1.3362 late Monday afternoon. In screen
trading ahead of the pit open, the March S&P 500 futures are down 4 points to
864.50. February crude oil is down $1.01 to $36.58 a barrel in overnight
activity.
On the economic front Tuesday, Federal Reserve Chairman Ben Bernanke was
scheduled to speak on "The Crisis and the Policy Response" in London at 8 a.m.,
EST (1300 GMT). The November U.S. trade deficit is due out half an hour later
and is forecast to narrow to $51 billion from $57.19 billion in October.
In New York Monday, gold futures fell sharply on fund liquidation, reaching
their lowest point in nearly a month as sinking crude, a rising dollar and
technical selling weighed on the metal. February gold fell $34, or nearly 4%,
to settle at $821, while March silver lost 57 cents to $10.75.
Comex gold warehouse stocks were steady at 8,555,768 ounces Monday, while
silver stocks were down 319,241 ounces at 127,456,422 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
