DJ PRECIOUS METALS: NY Gold Seen Up $2, Silver Down 2 Cents
June gold futures are expected to open floor trading in
New York around $2 an ounce higher Wednesday, based on electronic activity
ahead of the pit session at the Comex division of the New York Mercantile
Exchange. May silver is expected to be down about 2 cents an ounce.
At 7:49 a.m. EDT, spot gold was trading up $2.05 to $884.30. In overnight
activity, gold drifted higher in a narrow range as the market awaited earnings
results from Morgan Stanley and Wells Fargo.
Physical demand remained supportive, but traders were more keen to find out
whether the banks' results would boost or hurt risk appetite.
Disappointing performances could send equity markets lower and reignite the
risk aversion seen earlier this week to gold's benefit, traders said.
U.S. economic reports on Wednesday include April 17 U.S. Energy Department
oil inventories at 10:30 a.m. EDT (1430 GMT), with crude oil stocks expected up
2.5 million barrels.
Treasury Secretary Geithner is scheduled to speak on the administration's
efforts to address the global recession in Washington at 9 a.m. EDT (1300 GMT).
Comex gold warehouse stocks were up 7,544 ounces at 8,460,537 ounces Tuesday,
while silver stocks were down 458,894 ounces at 116,402,298 ounces.
