NY platinum bolts to 23-yr high early, gold propped Updated Mon 2/3/2003 10:34 EST
NEW YORK, Feb 3 (Reuters) - NYMEX platinum futures streaked to a
23-year high Monday morning on prospects for new auto technologies and
threat of a labor strike in key producer Russia, while gold was firm after
early fund buying, dealers said.
April platinum futures <0#PL:> on the New York Mercantile Exchange at
0958 EST soared $20.10 to $679 an ounce, trading between $664 and $686, a
contract peak and platinum's highest price on a monthly basis since October
1980.
"All the talk about alternative fuel sources, that gave it a big jump,
jewelry demand is real strong, and the market is talking about labor
issues" at Norilsk Nickel <GMKN.RTS>, said James Quinn, commodities
commentator at AG Edwards in New York.
Spot platinum <XPT=> traded at $694/704, above Friday's closing level
at $662/$667. Spot fixed in the London afternoon at $698 an ounce, also a
23-year high.
Platinum traders were inspired last week when President George W. Bush
discussed funding for fuel cell research in his State of the Union speech.
The precious metal is a key component in fuel cells which create
electricity without pollution by combining hydrogen and oxygen into water.
Jewelry demand for platinum has also been on the rise.
"There is little sign of a top at this stage and we could easily see an
extension toward $730 or even $750 in the coming days," JP Morgan technical
analysts said in a market note. "Buy into pullbacks if they are seen."
Labor leaders at Norilsk Nickel, a major platinum producer and the
world's largest palladium producer, will consider on Wednesday launching a
one-hour strike at a key division after talks with management broke down, a
union official said.
Trade unions at the Arctic division, which employs 60,000 people, have
threatened to launch a strike to press for higher pay, longer vacations and
more information from the company including details of top managers'
salaries.
NYMEX March palladium <0#PA:> gained $5.50 to $264.50 an ounce. Spot
palladium <XPD=> fetched $262/$268, up about $6 from Friday's close.
Gold was firm but off from morning highs after U.S. equities bolted
higher following a much-anticipated report by the Institute for Supply
Management indicating manufacturing activity and new orders blossomed in
January.
But fears of war with Iraq and a weak dollar were expected to keep a
bid under gold prices, traders said.
"You've seen some decent fund buying after light liquidation by the
dealers earlier," said one COMEX trader. "There seems to be a whole
population that wants to be long this market so any dip is viciously bought
by retail and the funds."
Active April futures <GCJ3> on NYMEX's COMEX division rose $1.60 to
$370.70 an ounce, moving from $368.70-$372.70, its double-top from Friday.
Spot gold <XAU=> was quoted at $369.20/9.95 an ounce, from Friday's
close at $368.10/8.85. London's late gold fix was at $369.50.
JP Morgan technicians said Monday they viewed gold's current price
range between $367 and $373 as a consolidation area within an underlying
bull trend.
On Friday, CFTC Commitments of Traders data for the week ended Jan 28
showed funds held a net long positions of 56,867 contracts in COMEX gold
futures, down from 61,682 lots a week earlier. Small speculators boosted
their net long exposure to 55,983 lots, from 46,590 previously.
IFR Pegasus analyst Tim Evans commented that funds might have reduced
longs ahead of first notice day for the February contract, although it
could also signal that funds reached a maximum exposure and are now
inclined to take profits.
Current high gold futures prices look more a function of small,
nonreportable traders who lifted their long stance to the most bullish bet
in years, said the analyst.
"These small traders may be more vulnerable to reversal than the funds
would be, compounding the high risk of long liquidation from the fund
sector," Evans stated.
Pegasus pegged resistance in COMEX April gold at $374 followed by $400,
with support traced down at $353, $346 and $339.
COMEX March silver <0#SI:> fell 1.5 cents to $4.845 an ounce, trading
$4.88-$4.835. Spot silver <XAG=> was at flat from Friday's close at
$4.83/4.85. The London fix was $4.845.
((Reporting by Zach Howard; editing by John Picinich; Reuters Messaging:
zach.howard.reuters.com@reuters.net; 646-223-6045; fax: 646-223-6049;
zach.howard@reuters.com))
(C) Reuters 2003. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Reuters. Reuters and the Reuters
sphere logo are registered trademarks and trademarks of the Reuters group of
companies around the world.
nN03377026
GOL/X |
