DJ PRECIOUS METALS: NY Gold Seen Down $11, Silver Down 26 Cents
June gold futures are expected to open floor trading in New York around $11
an ounce lower Tuesday, based on electronic activity ahead of the pit session
at the Comex division of the New York Mercantile Exchange. July silver is
expected to be down 26 cents an ounce.
A stronger dollar and general profit-taking after gains last week spurred
traders to sell gold during overnight trading, said a London-based trader.
Crude oil and base metals were also down.
At 7:52 a.m. EDT, spot gold was trading down $11.10 from Monday to $947.40.
In other markets that have the potential to impact metals in the short term,
the euro is down to $1.3895 from $1.3997 late Friday afternoon and $1.4014 late
Monday. In screen trading ahead of the pit open, the June S&P 500 futures are
down 3.90 points to 881. July crude oil is down $1.34 to $60.33 a barrel in
overnight activity.
U.S. economic data due out Tuesday begin with the Chicago Fed's National
Activity Index at 8:30 a.m. EDT (1230 GMT) and the Case-Shiller Home Price
Index at 9 a.m. EDT (1300 GMT). Reports at 10 a.m. EDT (1400 GMT) include the
Richmond Fed survey and the Conference Board's Consumer Confidence Index
(forecast 43 in May versus 39.2 in April). The Dallas Fed's manufacturing
outlook survey will be released at 10:30 a.m. EDT.
Other major reports this week include existing-home sales Wednesday, jobless
claims, durable-goods orders and new-home sales Thursday, followed by gross
domestic product, the Chicago Purchasing Managers Index and the University of
Michigan consumer-sentiment index on Friday.
In New York Friday, gold futures extended their recent rally as the U.S.
dollar remained on the defensive, enabling the metal to hit a roughly two-month
high despite some of the profit-taking by longs ahead of a three-day U.S.
Memorial Day weekend. Some fund buying was reported, and pre-holiday trading
conditions were described as light. June gold rose $7.70 to $958.90 an ounce on
the Comex division of the New York Mercantile Exchange. July silver added 25
cents to $14.695.
Comex gold warehouse stocks were down 886 ounces at 8,297,020 ounces Friday,
while silver stocks were up 605,851 ounces at 120,414,369 ounces.
