646.8: silver 13.22: oil 54.84: usd 84.48 , page-2

UPDATE 5-Gold rallies to 7-week high on fund buying
Tue Jan 23, 2007 8:29 PM GMT
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By Frank Tang and Atul Prakash

NEW YORK/LONDON, Jan 23 (Reuters) - Gold jumped more than 2 percent to a seven-week high on Tuesday as a sharp decline in the dollar and firmer oil prices triggered speculative fund buying, dealers said.

Other precious metals tracked gold higher, with spot palladium hitting a 4-1/2-month peak, platinum rising to a seven-week high and silver reaching its highest level in more than a month.


Gold was quoted at $647.10/648.10 by 3:11 p.m. EST (2011 GMT), up from $632.60/633.60 in New York late on Monday.

Most-active gold for February delivery on the COMEX metals trading division of the New York Mercantile Exchange settled up $11.80, or 1.9 percent, at $645.90 an ounce. It was trading in a $15-range between $632.30 and $647.00 an ounce -- its highest level since Jan. 3.

"The buying we have seen this morning has been predominantly funds. The gold market is going to encounter quite a bit of chart resistance, but if we break above $648 an ounce, the market will go to $676," said Peter Hillyard, head of metals sales at ANZ Investment Bank.

Gold, used in jewelry and also as a monetary vehicle, has been erratic this year, jumping to $644.90 on Jan. 3 before tumbling to $601.70 two days later. Continued...

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyID=2007-01-23T202929Z_01_L23497547_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-5.XML