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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (16623)	7/19/2006 1:59:34 PM
From: Proud Deplorable	Read Replies (1) \| Respond to of 78416

Gold rises as Bernanke comments hit dollar PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Polya Lesova, MarketWatch Last Update: 11:51 AM ET Jul 19, 2006 NEW YORK (MarketWatch) -- Gold futures shed early losses to trade higher Wednesday, strengthened by the falling dollar after Federal Reserve Chairman Ben Bernanke signaled that the end of the rate-hiking cycle may be closer than many expected. Gold for August delivery was last up $10.30 at $639.50 an ounce on the New York Mercantile Exchange, pulling back up from an overnight low of $618.90. Other metals prices were mixed. Silver added 41.5 cents at $10.85 an ounce. Copper edged down 4.4 cents at $3.53 a pound, platinum declined $7.60 at $1,227 an ounce and palladium dropped $4.70 at $309.50 an ounce. The dollar fell against major currencies after Bernanke told Congress that the economy is likely to slow, easing inflation pressures. His comments came just ninety minutes after a consumer inflation report that showed core prices rising at a faster-than-expected pace. See Bernanke comments. See currencies. "Gold bullion and equities took off at drag-race speeds, immediately after Mr. Bernanke confirmed that he sees plenty of signs of a slowing U.S. economy," said Jon Nadler, analyst at Kitco.com. "Once again, gold can refocus on the geopolitical drivers that have lent it support in past weeks." Trading in metals has been very volatile over the last two weeks with big price swings in both directions. Prices lost almost $40 in the last two sessions after last week gaining more than 5% as safe-haven demand was fueled by fighting in the Middle East, deadly train bombings in India and defiance by Iran and North Korea over their nuclear programs. Gold has also been hurt by a shift into the dollar as a safe-haven play. The dollar had found strength in recent weeks from expectations that the Fed will keep raising rates, increasing the attractiveness of the currency and assets denominated in it. Gold may now regain some of its safe-haven allure. Overnight, fighting between Israel and Lebanon continued. Since the conflict broke out last week, at least 270 Lebanese citizens and 25 Israelis have died, according to the BBC. An Israeli general said Tuesday that Israel's offensive would continue for another few weeks, and that the deployment of large numbers of ground forces had not been ruled out. Tensions in the Middle East still have the potential to generate safe-haven demand for gold, said James Moore of TheBullionDesk.com. Dennis Gartman of The Gartman Letter said: "In the current environment, where the funds have perhaps become a bit heavily laden with long positions, and where the public quickly became enamored once again of gold as an inflation hedge, long liquidation is a fact of life. A bit more correction [...] and we'll be enormously bullish once again." On the supply side, gold inventories were unchanged at 8.06 million troy ounces, according to Nymex data. Silver supplies rose by 996 troy ounces to 102.7 million and copper supplies fell by 42 short tons to 7,144 short tons. Indexes that track mining and metals stocks were higher. The Philadelphia Gold & Silver index (XAU : phlx gold silver index capital-weight News , chart, profile, more Last: 143.67+5.18+3.74% 1:58pm 07/19/2006 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: XAU143.67, +5.18, +3.7%) was last up 1.6% at 140.65, the Amex Gold Bugs (HUI : amex gold bugs index equal-$ weight News , chart, profile, more Last: 335.77+12.65+3.91% 1:58pm 07/19/2006 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: HUI335.77, +12.65, +3.9%) rose 2.8% to 332.19 and The CBOE Gold Index (GOX : CBOE Gold Index News , chart, profile, more Last: 145.85+5.50+3.92% 1:58pm 07/19/2006 Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: GOX145.85, +5.50, +3.9%) rose 3.1% to 144.63.