-- NY Gold Ends Firmly but Off $350 Mark --
NEW YORK (Reuters) - COMEX gold futures closed higher
Friday on buying sparked by a weaker U.S. dollar after
profit-taking earlier knocked the precious metal following a
test of near six-year highs above $350 an ounce, dealers said.
Jitters over a U.S. confrontation with Iraq and North Korea
and lower equity markets continued to prop safe-haven gold, but
trade was thin as many players kept to the sidelines for
Christmas week holidays.
"The liquidity just isn't there. When we just get above
$350 it seems to be a selling point, but the market is also
holding too at the higher levels," said George Parrill, a vice
president at bullion dealer ScotiaMocatta in Toronto.
Benchmark February gold <0#GC:> on the New York Mercantile
Exchange's COMEX division ended up 30 cents at $349.70 an
ounce, its highest closing level in almost six years, but off
last week's peak at $355.70, due to stiff resistance above
$350.
The February contract ranged from a session low of $347.30
to the overnight high in electronic ACCESS trading at $352.
Spot gold <XAU=> last traded at $348.90/9.50, slightly
higher than the previous New York close at $348.55/9.25 and
Friday's late fix in London at $349.30.
"What happens Monday and Tuesday probably depends on what
happens with the U.S. dollar, with Iraq and North Korea,"
Parrill added. "The general uncertainty is moving people into
gold, for now."
Nervousness over the threat of U.S. confrontation with Iraq
over its alleged stockpiles of weapons were compounded this
week by news on Sunday that North Korea said it was
reactivating a nuclear reactor capable of making nuclear arms.
North Korea on Friday said it would expel U.N. inspectors
monitoring the reactor capable of producing plutonium for
weapons. The state news agency earlier accused the United
States of seeking to overthrow the isolated and impoverished
communist state's political system and said the U.N. weapons
inspectors were no longer needed.
The United States called on North Korea to scrap its
nuclear weapons program, saying Washington would not negotiate
in response to "threats of broken commitments."
Gold, seen as a kind of sanctuary in troubled times, is one
of the best performing financial assets in a year marked by war
jitters, recession fears and corporate malfeasance. Prices are
up about 26 percent in 2002 with two days left.
Traders peg support in COMEX February futures at $345 and
$342.50, with resistance lurking around $350-352 an ounce.
Closely-watched CFTC Commitments of Traders data issued
after the close showed large speculators net long on COMEX by
57,105 (100-ounce) gold contracts as of Tuesday, against 55,200
lots a week earlier.
In currency trading, the dollar on Friday hit fresh
three-year lows against the euro <EUR=> and four-year lows
against the Swiss franc <CHF=> on international tensions over
North Korea's nuclear ambitions.
A weak dollar versus other currencies makes
dollar-denominated gold cheaper in relative terms for overseas
buyers.
Heightened fears also hit U.S. equities, with the Dow Jones
30 <.DJI> losing 113 points to 8,319 in mid-afternoon.
COMEX March silver futures <0#SI:> rose with gold to end up
1.8 cents at a one-week high of $4.723 an ounce, after trading
from $4.68-$4.735. Spot silver <XAG=> was at $4.70/72, above
Thursday's New York close at $4.68/70.
Platinum group metals firmed also, boosted by speculative
bargain hunting, after prices dipped during contract rollover.
"There was early morning buying around the ring -- it was
all market orders on the buy side by various specs and
commission houses," said RJ Futures trader Ralph D'Esposito.
April platinum <0#PL:> climbed $7.40 to $581.60 an ounce
after traders rolled most positions forward out of the January
contract. Spot platinum <XPT=> hit $593.60/598.60.
NYMEX March palladium <0#PA:> was up $4.75 at $238.75 an
ounce. Spot palladium <XPD=> traded at $234.75/242.75.
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Symbols:
US&DJI US;COMP
27-Dec-2002 20:36:48 GMT
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