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  • Feb 4th, 2005
  • Comments Off on US MIDDAY: New York gold at 3-1/2-month low
US gold futures sank to 3-1/2-month lows on Thursday, breaking below $420 an ounce and out of a month-old trading range, on a mixture of long liquidation and currency-related selling, dealers said. By 11:48 am EST (1648 GMT), benchmark April gold extended losses to trade at $416.80 an ounce, down $6.20, on the New York Mercantile Exchange's COMEX division. It bottomed at $416.20 which was the contract's lowest since October 13.

The dollar rose broadly as traders scrutinised recent economic data, last night's speech by president George W. Bush, which contained a somewhat more conciliatory tone, and also braced for more key events in the next two days.

The US Federal Reserve in remarks on Wednesday appeared intent on preserving its "measured" monetary tightening campaign. The Fed's 25 basis-point increase in interest rates to 2.50 percent on Wednesday was the sixth hike since June. Business productivity rose at a smaller-than-expected 0.8 percent annual rate in the fourth quarter, while, in a more dollar-positive report, US jobless claims fell 9,000 to 316,000 in the latest week.

Markets were seen awaiting Friday's monthly US jobs report and the weekend G7 meeting for more guidance.

Spot gold fetched $415.20/6.00, against an earlier low at $414.80 - it cheapest since October 13 - and Wednesday's New York close at $421.00/1.80. Thursday's morning fix in London was at $419.80.

COMEX March silver fell 11.0 cents to $6.64 an ounce, dealing between $6.78 and $6.59 - a two-week low. Spot hit $6.62/64 versus $6.72/75 previously. The fix was at $6.7050.

NYMEX April platinum slipped $8.30 to $865 an ounce. Spot platinum was down at $862/866. March palladium fell $5.50 to $182.50 an ounce. Spot stood at $180/184.

Copyright Reuters, 2005


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