ny precious metals review

DJ NY Precious Metals Review:Gold Ends Firm After Choppy Day

NEW YORK (Dow Jones)--Gold futures on the Comex division of the New York
Mercantile Exchange endured a turbulent session Thursday when the continued
decline in the U.S. dollar versus other currencies initially spurred gold
higher before fund profit-taking knocked prices lower.

The most active December contract settled 80 cents higher at $425.60 per
ounce.

Dealers said that while the continued weakness in the U.S. dollar helped
steer gold higher on the open, the fact that the euro failed to maintain its
recent rate of ascent against the U.S. currency spurred some speculative
players to offload some exposure to the gold market over the course of Comex
morning trade. More such long liquidation is expected over the near term unless
the euro regains a steeply rising path versus the dollar. "The euro's sharp
climb yesterday is what really drove gold higher, and the fact that the euro
has not been as impressive today has lightened the buying interest in gold,"
noted the head metals trader at a large New York-based UK investment bank.

"If the euro keeps rising, gold will, too, especially if oil prices stay high
and people get nervous ahead of the election," he added. "But if the euro pulls
bank gold will be vulnerable to a correction because of the make up of the
longs," he cautioned. He and others argued that upside targets for both
December and spot gold include $428 and $430. Any retreats in price are
expected to uncover support around $420-421 and then $417-418, they added.

December silver moved in line with gold and started out with a brief
excursion above $7.40 to $7.42 and six-month highs before sagging to the $7.195
region as sellers came to the fore. A late let-up in selling interest allowed
prices to creep back above $7.30 for the close.

Spot prices peaked at $7.39 before wilting to the $7.155 area ahead of ending
the New York session around $7.26.

Dealers said more gold-tracking is expected over the coming days, with the
$7.40, $7.42 and $7.45 levels eyed to the upside and the $7.15 and $7.10 levels
expected to offer support.

Nymex January platinum stretched to five-day highs early before steadying
around $851-852 for the close. Spot prices topped out at $855.50 before ending
the New York trading day around $848.50.

Both spot and futures prices are expected to struggle pressing higher over
the near term without a concurrent strength in gold, dealers said.

December palladium pushed sideways in a $214.00-217.50 range, while spot
metal kept to a $211.00-218.50 path.


Settlements:
London PM Gold Fix: $422.50 Thursday, $423.60 Wednesday
U.S. spot gold 1350 ET: $424.25, down $0.50 from Open; Range: $421.75-426.38
Dec gold (RGCZ04) $425.60, up $0.80; Range: $423.00-426.80
Dec silver (RSIZ04) $7.310, down $0.042; Range: $7.195-7.420
Jan platinum (RPLF05) $851.80, up $3.70; Range: $847.00-855.00
Dec palladium (RPAZ04) $216.90, up $1.25; Range: $214.00-217.50