Gold ends up, lifted by oil surge, dollar drift -
Mon Jul 9, 2007
NEW YORK (Reuters) -
U.S. gold futures held onto strong gains into the close
on Monday, after being lifted to a one-month high
as fund and speculative buyers reacted to a
drifting dollar and surging oil prices,
traders said.
"Metals were up across the board.
The dollar was weak and oil was up quite a bit
and that supported it right from the get-go,
but it was on light volume,"
said one New York gold dealer.
Most-active gold for August delivery
(GCQ7) on the COMEX division of the New York Mercantile
Exchange settled with $7.70 gains at $662.50 an ounce.
It set a higher range from $657.80 and $666.0 an ounce,
a level last seen on June 7.
At its session top, August gold reached higher than in
three prior attempts to break resistance at $666.0 an ounce.
A languishing dollar, however, offered gold bulls a reason
to buy, especially in the face of surging oil prices.
The dollar traded mostly flat on Monday in a quiet session.
Sentiment for the dollar has been dampened by expectations
that the Federal Reserve will keep interest rates unchanged
this year even as other central banks tighten monetary policy.
A weaker dollar often helps dollar-denominated assets
like gold that trade in overseas markets.
On Monday, crude oil prices rose to an 11-month high
above $76 a barrel as rising global oil demand and
North Sea field maintenance exacerbated supply worries.
London Brent higher crude (LCOc1) climbed to an intraday
high of $76.34 a barrel, its highest levels
since August 2006 and a stone's throw from the all-time
high at $78.34 reached on August 8, 2006.
Rising oil prices often boost gold prices because of
inflationary implications, and sometimes because underlying
geopolitical tensions also spur safe-haven gold buying.
$6 price target for NGX -
Northgate Minerals Corp. (NGX : TSX)
Estimates upped on new gold & copper prices
Blackmont Capital maintains "buy",
12-month target price is raised to $6.00 -
Imo. Tia.
God Bless
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