DJ Asia Precious Metals: Gold, Silver Steady; Mkt Awaits US Data...

DJ Asia Precious Metals: Gold, Silver Steady; Mkt Awaits US Data

SYDNEY (Dow Jones)--Spot gold failed to move beyond the confines of a
narrow trading range Thursday in Asia, with most players keeping to the
sidelines as the market awaits several key U.S. economic reports.
"Chances are, dealers are timing their entry points to coincide with the
release of U.S. economic data over the next two days," Standard Bank London
said in a market commentary released Thursday afternoon in Asia.
At 0730 GMT, spot gold was quoted at US$396.25 a troy ounce, up US$1/oz
since Wednesday's Comex close in New York.
Among the reports due to be released later Thursday are weekly jobless
claims figures and retail sales data for July, to be followed Friday by
readings on inflation, the U.S. trade balance and consumer confidence.
Bullion traders said the market is hoping to gauge whether the optimism
expressed in the U.S. economy by the Federal Reserve earlier this week is
fully justified, and thereby form a more accurate assessment on the likely
pace and timing of future interest rate hikes.

(Prices in dollars/troy ounce, except Tocom in yen/gram.)
Thursday Change On Wednesday Thursday Leading
0730 GMT New York Late HK Range Tocom
Gold 396.25 up 1.00 396.80 395.58-396.55 1,408
Silver 6.54 up 0.02 6.65 6.50-6.60 23.15
Plat. 842.50 up 6.00 844.50 840.50-845.50 2,899
Pall. 212.50 unch 215.50 212.50-217.50 769

In the meantime, in the absence of significant U.S. dollar gains since the
Fed raised rates Tuesday, traders and analysts said gold continues to look
well-supported over the near term.
US$393/oz, approximately the intraday low reached Wednesday, was indicated
as an initial support level.
Moreover, despite this week's modest pullback, "the gold price is still
expected to remain supported by fears of terrorist attacks, particularly as we
approach the start of the Olympics in Athens that is seen as a possible
target," said Martin Mayne of N M Rothschild and Sons in Sydney.
Following a steep fall in U.S. trading Wednesday, spot silver held steady
in Asia, although it now appears vulnerable on a technical basis, according to
several observers.
"If silver is unable to hold the 100-day moving average (at US$6.44/oz),
it could slip quickly to the 200-day moving average at US$6.22," ScotiaMocatta
said.
At 0730 GMT, spot silver was quoted at US$6.54/oz, up 2 cents since the
Comex close.
Tokyo Commodity Exchange silver futures came under heavy selling pressure
Thursday as prices tumbled in reaction to the losses overnight.
The benchmark June 2005 Tocom silver contract shed Y0.58 a gram to end the
day at Y23.15/gram on a total volume of 6,413 lots.
Tocom gold futures also fell, with the June 2005 contract losing Y10/gram
to close Y1,408, with a modest total of 28,753 lots changing hands on the day.
Tocom platinum futures slipped, with the lead contract falling Y11/gram to
close at Y2,899. Total volume across all contracts equaled 32,971 lots.
Tocom palladium futures also lost ground, with the June 2005 contract
shedding Y9/gram to finish at Y769. A total of 645 lots were traded.

-By Nicholas Sinclair; Dow Jones Newswires; 612-8235-2957;
[email protected]

(END) Dow Jones Newswires

FSN2200 CFMO COMMENTS METALS
2004-08-12 07:51:29 UTC
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