09:15 AM ET 07/07/97
NY precious metals tumble in early trading
NEW YORK, July 7 (Reuter) - New York precious metals tumbled Monday morning, led by gold's downward spiral as the yellow metal caught up with losses notched during the U.S. Independence Day holiday Friday and overnight, dealers said.
"We have broken past 10-year support levels, and the technical outlook implies that the next major psychological support is above $300 which the market may try to test," analyst Jim Steel of Refco said.
At 0911 EDT, COMEX August gold was down $9.30 at $315.90 an ounce, traded $318.50 to $314.60.
COMEX August gold was called to open $7.00 to $8.00 lower after hitting fresh 12-year lows overnight.
The sharply lower opening call was also unnerving for COMEX traders as they began dealing live in their new trading floor in Battery Park City, Manhattan on Monday.
The move there had already been delayed once.
"We are responding to the market and we are responding to the new exchange which is not functioning very well," floor trader John Geraghty of North American Equity Services said.
"There is really a very large frustration factor here."
Gold fell to 12-year lows last Thursday when Reserve Bank of Australia said it had sold most of its reserves, the latest in a growing list of central banks that have sold some of their yellow metal hoards.
"The selling is mixed. We had support at $315.00 (in August) but we took it out. A settlement below $315.00 an ounce would be real bad, and it could take us down to $300.00," a COMEX floor source said.
Gold bullion was quoted by dealers at $315.30/90.
COMEX September silver was down 16.5 cents at $4.405, traded $5.505 to $4.365.
"We are down mostly off the gold," a COMEX silver floor trader said. "We had some good fund selling here."
Support in the September contract was pegged at $4.36 to $4.28.
Platinum and palladium also slid on the back of gold's woes.
There was also further confirmation Monday that Russian platinum group metal exports for 1997 would begin this month.
Russia's Tass news agency quoted a Finance Minister saying the exports would resume in July.
NYMEX platinum floor sources said volume was thin and the
markets were dragged down by gold and silver.
NYMEX October platinum was down $12.40 at $392.30, traded $398.00 to $390.10 an ounce. NYMEX September palladium was $5.25 lower at $167.75, traded $168.00 to $167.00.
((Huw Jones, New York Commodity Desk 212-859-1646)) |
