Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : News Links and Chart Links -- Ignore unavailable to you. Want to Upgrade?

To: pallmer who wrote (4754)	1/13/2003 11:25:24 AM
From: pallmer	Read Replies (1) \| Respond to of 29600

-- Early COMEX gold subsides as oil prices weaken -- NEW YORK, Jan 13 (Reuters) - COMEX gold was lower early Monday, taking a breather from its rally as lower oil prices reduced demand for gold as protection against inflation. Bulls continue to see gold as a safe-haven, with the United States deploying thousands more troops to staging areas in the Gulf region, massing to be ready within weeks for a war in Iraq that could threaten Middle East oil supply. But the COMEX is extremely overbought, limiting scope for further gains, according to brokers. Pressured by bullion selling overnight, COMEX February gold <0#GC:> at 0935 was off $2.30 at $352.60 an ounce, trading $354.40-$351.60. It ended up $1.20 on Friday after a late burst of fund buying, but failed to break above Thursday's six-year high at $357.50. "Nothing's happening here. We saw a little bit of fund buying again this morning and a little bit of dealer selling," said a COMEX broker. "We're probably waiting for the energies for a cue." Crude oil fell overnight after the Organization of Petroleum Exporting Countries (OPEC) agreed to increase production by 1.5 million barrels per day to offset supply disruptions from strike-torn member Venezuela and, potentially, the Gulf. A firmer dollar also took some of the wind out of gold's sails after the greenback's fall to three-year lows against the euro last week made it more attractive for European investors to buy bullion. Players see risk of a correction to clear the biggest fund long position in years. Noncommercials increased their bullish exposure to 63,563 contracts as of Tuesday from 59,505 a week earlier, according to CFTC Commitments of Traders data released late Friday. Compounding that risk are the 45,823 contracts that small speculators hold in excess of shorts. "A more emphatic rally in the stock market, an upward reversal in the U.S. dollar, any backing away from war with Iraq or even the mere approach of first notice day on the February futures could be the fundamental trigger for profit-taking," wrote analyst Timothy Evans of IFR/Pegasus. March silver <0#SI:> was off 5.3 cents at $4.82, trading $4.87-$4.795. Spot silver <XAG=> was quoted at $4.80/82, down from $4.85/87 at Friday's close. The fix was at $4.82. NYMEX April platinum <0#PL:> was off $2.80 at $613 an ounce, retreating from an all-time high at $618 Friday. Spot <XPT=> was at $618/625. With automobile makers buying more platinum for catalytic converters, and less palladium, dealers are now eyeing platinum's $644 peak hit two years ago, above which the metal has not traded since 1987. The platinum market has tightened and lease rates firmed last week after miner Lonmin Plc. <LMI.L> <LONJ.J> said an explosion in late December at its Western Platinum smelter in South Africa had disrupted production at the plant. March palladium <0#PA:> was down $6.30 at $263 an ounce. Spot palladium <XPD=> traded at $259/267. ((Reporting by Alden Bentley; editing by John Picinich; alden.bentley@reuters.com; Reuters Messaging: alden.bentley.reuters.com@reuters.net; 646 223 6041)) (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. nN13366874 GOL/X Symbols: GB;LMI 13-Jan-2003 15:17:18 GMT Source RTRS - Reuters News