DJ PRECIOUS METALS: NY Gold Seen Down $5, Silver Down 18 Cents
December gold futures are expected to open floor trading in New York around
$5 an ounce lower Wednesday, based on electronic activity ahead of the pit
session at the Comex division of the New York Mercantile Exchange. September
silver is expected to be down 18 cents.
Spot gold extended losses in Europe overnight due to a stronger U.S. dollar
against the euro, and traders said with volumes low and demand down, the metal
could fall further.
At 7:59 a.m. EDT, spot gold was trading down $3.05 to $934.60.
In other markets that have the potential to impact metals in the short term,
the euro is down to $1.4101 from $1.4172 late Tuesday afternoon. In screen
trading ahead of the pit open, the September S&P 500 futures are down 5.10
points to 970.80. September crude oil is down $1.61 to $65.62 a barrel in
overnight activity.
U.S. economic data Wednesday include June durable-goods orders due out at
8:30 a.m. EDT (1230 GMT), forecast to fall 0.5%, and the Federal Reserve's
Beige Book report at 2 p.m. EDT (1800 GMT).
In New York Tuesday, a bounce in the U.S. dollar prompted participants to
book profits in gold, which hit resistance around $960 before sinking sharply.
December gold fell $14.60 to settle at $941.70 an ounce, while September silver
lost 25 cents to settle at $13.74.
Comex gold warehouse stocks were up 7,500 ounces at 9,144,219 ounces Tuesday,
while silver stocks were unchanged at 117,948,006 ounces.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
