NY precious metals mixed midday, watching stocks
NEW YORK, Aug 13 (Reuter) - COMEX gold and silver were
higher midday, supported by ongoing volatility in the U.S.
stock and bond markets, despite benign inflation data, while
NYMEX platinum group metals (PGM) futures were lower.
U.S. July retail sales rose 0.6 percent, largely matching
expectations, while the U.S. July PPI fell 0.1 pct, the seventh
consecutive monthly decline, erasing the latest bout of
inflation fears which had contributed to the past week's sharp
downward correction in bonds and stocks.
But a brief rally in U.S. treasury bonds and stocks failed
early and the Dow Jones Industrial Average tumbled to new lows
for the month, before beginning some consolidation late
morning.
"All heads in the gold ring are turned to the Dow and gold
is moving almost tick for tick with stocks and bonds," North
American Equity Services COMEX floor trader John Geraghty said.
"There are many people in these financial markets who have
never seen much of serious correction and if it happens, you
could a lot of already-nervous shorts in the gold market run
for cover," he said.
"The trade is selling December gold between $333.00-335.00
and have been doing OK on it in the past few days, but if the
top of the recent range around $335.00 breaks, there will be
heavy shortcovering," he said.
COMEX December gold was up 80 cents at $331.60 midday,
after seeing a morning high at $333.20.
In the bullion market, spot gold was quoted $327.90/40 an
ounce, compared to the London Wednesday afternoon fix at
$326.20 and compared to $324.80 in New York late Tuesday.
Implied gold lease rates rose sharply again Wednesday, to
2.29 pct for one month from 1.93 pct Tuesday, and to 2.26
percent for one year from 2.20 pct, suggesting funds and
producers may be borrowing again to fund short positions and
hedges, with gold back near the top of its range of the past
month around $330.00 in the spot market.
COMEX September silver was up 6.0 cent at $4.485 an ounce,
after seeing an early high at $4.530.
But NYMEX October platinum was off $2.00 at $433.00, while
NYMEX September palladium was down $2.00 at $216.0 as both
contract continued to consolidate after seeing new contract
highs earlier this month.
"October platinum has shown its strong structure with the
ability to return to strength after a sizable washout," CRB
analyst Terry Roggensack said.
"Longer term target upside in the platinum are $464.00 and
$471.00."
Meanwhile, the acute shortage of metal in the physical
market continued, with one month platinum lease rates around 20
pct and one month palladium still around 80 pct, refining
sources said.
email: clive.mckeef @ reuters.com
((Clive McKeef, New York Commodities Desk, 212-859-1641)) |
