Rohstoffnews

06 Jan 2005 18:19

06.01.2005 17:06:47 Europäische Anleger verschmähen Gold

Zürich, 06. Jan (Reuters) - Gold hat den negative Trend der vergangenen Tage auch am Donnerstag nicht abschütteln können. Vor allem der weiter anziehende Dollar habe den Goldkurs in die Knie gezwungen, sagte ein Händler. Doch könnte die derzeitige Konsolidierung nach den Höchstständen von Ende 2004 auch den Beginn einer längeren Abwärtsphase markieren. Mit einem Fall unter die Marke von 424 Dollar sei die Tür für viel grössere Verluste bis auf 410 Dollar aufgestossen, so ein Händler.

Zum Handelsschluss stand die Feinunze Gold bei 422,80/423,55 Dollar nach 426,30/427,00 Dollar am Vortag. In London wurde das Edelmetall am Nachmittag bei 424,35 Dollar und am Vormittag bei 425,80 gefixt. Am Mittwochnachmittag lautet das Fixing auf 426,00 Dollar.

Andere Marktkenner geben sich dagegen für die langfristigen Goldaussichten optimistisch und verwiesen auf die anhaltenden geopolitischen und ökonomischen Unsicherheiten. Die steigende Zahl der Anschläge vor den Wahlen im Irak Ende Januar und das weiter anschwellende US-Doppeldefizit sollten Gold als "safe heaven"-Investment zu Gute kommen.

Mit Spannung erwarten die Marktteilnehmer zunächst aber die am Freitagnachmittag anstehenden US-Arbeitsmarktdaten für Dezember.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.825/16.075 (Vortag 15.920/16.170) sfr an.

pma/och

06 Jan 2005 18:22

06.01.2005 17:03:46 UPDATE 1-Europe gold touches two-month low on strong dollar

(Updates to afternoon)

LONDON, Jan 6 (Reuters) - Gold slid to its lowest in two months in Europe on Thursday and may be poised to drop further as its investment appeal was knocked by dollar strength, dealers said.

Spot gold was at $422.00/422.80 per troy ounce by 1553 GMT, down from late New York's $427.65/428.40.

It touched a low of $420.90 -- last seen in early November.

Bullion prices gave way amid technical selling, with the market still seeking stability after fund-led falls earlier this week as the dollar started its fightback from a record low against the euro.

"We have come down a fair bit, even though daily charts are showing the market as oversold, because everyone is taking their cue from the dollar/euro," one dealer said.

"This is possibly a good place to take a long position and sit with it," he added.

Others said the market might fall further before stabilising, with $410 seen as the next big support level.

The dollar pared gains but remained up on the day versus the euro after a report showed a jump in U.S. jobless claims.

A stronger U.S. currency makes dollar-priced bullion less attractive for non-U.S. investors.

U.S. non-farm payroll figures due on Friday are the next major factor in determining whether the dollar will extend its rally or resume an overall three-year downtrend driven by worries about the current account and budget deficits of the world's biggest economy.

Economists polled by Reuters said 175,000 jobs were probably created in December, up from November's disappointing 112,000 gain.

James Moore of TheBullionDesk.com remained upbeat on the longer-term outlook for bullion, citing economic and geopolitical worries as supportive factors.

"The prospect for gold is still positive with continued violence in Iraq ahead, its presidential elections at the end of the month, the G7 summit, President Bush's State of the Union address and U.S. deficits all increasing the safe-haven argument for gold," he said.

The world's largest gold producer, Newmont, was also upbeat given expectations for the dollar to continue falling against the euro. (For full story click on [nN05521033]

Silver eased with gold to $6.43/6.46 from $6.53/6.58 in New York on Wednesday.

Traders said price were holding support relatively well and had technical and physical backing.

Platinum edged higher to $846.00/851.00 from $845.00/850.00, while palladium slipped slightly to $178.00/183.00 from $179.00/185.00.

06 Jan 2005 18:38

06.01.2005 17:27:41 NY gold tumbles early, eyes on $420 support level

NEW YORK, Jan 6 (Reuters) - U.S. gold futures plunged to two-month lows Thursday morning on fund liquidation, and other precious metals mostly fell, trailing the euro, which hit a four-week low against the resurgent dollar, dealers said.

By 10:42 a.m. EST (1542 GMT), February delivery gold slid $4.30 to $423 an ounce on the New York Mercantile Exchange's COMEX division, dealing between $428.30 and $422.20, its cheapest price since Nov. 3.

Gold has shed about $25 since late December and dealers said price action was a continuation of the speculative selling sparked by a falling euro, which limited the metal's demand from overseas traders.

The market could be heading for a test of a key round-number support level in the near-term, traders said.

"It's more liquidation in gold, with a possible test of $420," said James Quinn, commodities commentator at A.G. Edwards & Sons.

A gold desk trader said: "It's positions being reduced. There is nothing really new. The market looks like it's seeing scale-down selling consistently through the day. Every rally seems to be sold, and that seems to be the pattern."

Spot gold slid to $421.80/2.60 an ounce, down from Wednesday's late New York quote at $427.65/8.40. Thursday's afternoon London fix was down at $424.25.

The euro sagged to around $1.3170, down slightly from late New York levels Wednesday.

Gold has a high correlation with the euro and tends to move inversely with the dollar.

Many, but not all, analysts are mixed on gold in the longer term, amid expectations for continuing safe-haven buying due to concerns about the dollar, giant U.S. deficits, geopolitical worries and inflation concerns.

But Andy Smith of Mitsui Global Precious Metals said "cycle" strength in gold, and the commodities sector generally, may be flagging after the huge rise in open interest they enjoyed in November, when U.S. investment banks were buying before their "financial" year-end.

In a weekly metals note, Smith also suggested that the build-up in bullion held in the U.S. gold exchange-traded fund streetTRACKS appeared to have leveled out following its much-hyped launch on Nov. 18 on the New York Stock Exchange.

As of Jan. 5, the ETF's holdings in bullion stood at 109.14 tonnes for the second straight day -- about 6 tonnes above the peak immediately after the launch, when investors were juicing gold prices to 16-year highs.

COMEX gold futures hit $458.70 on Dec. 2.

The dollar trimmed some gains after a report showed a jump in weekly U.S. unemployment benefit claims on the eve of Friday's influential monthly U.S. jobs report.

Claims were 364,000, above forecasts for 331,000. Analysts said the dollar gave up only a little ground because the weekly data is notoriously volatile. The report, however, did seem to signal a softer labor market than anticipated.

Other precious metals fell with gold.

March silver sank 8.5 cents to $6.45 an ounce, trading $6.565 to $6.41. Prices are close to three-month lows. Spot silver fetched $6.42/45, below its last New York close at $6.53/56. The fix was down at $6.42.

April platinum shed $5.50 to $846.80 an ounce. Spot platinum hit $846/851.

March palladium rose 10 cents to $183.40 an ounce. Spot held at $179/184.

06 Jan 2005 18:53

06.01.2005 17:42:13 Commodities News Summary

TOP NEWS
> NY gold tumbles early, eyes on $420 support level [nN06398842]

NEW YORK - U.S. gold futures plunged to two-month lows Thursday morning on fund liquidation, and other precious metals mostly fell, trailing the euro, which hit a four-week low against the resurgent dollar, dealers said.

- - - -

> Europe gold ends near two-month low on firm dollar [nL06366268]

* Spot gold weakens to close in Europe at $422.00/422.75 per troy ounce by 1615 GMT versus $427.65/428.40 in New York late on Wednesday.

- - - -

> COMEX copper falls in consolidative tussle [nN06401701]

NEW YORK - COMEX copper futures swung from lower to higher ground Thursday morning as players sorted out direction following Tuesday's biggest one-day drop in memory which left many players sidelined, while others hunted for bargains, traders said.

- - - -

> UPDATE 3-India releases sugar to ease prices [nL06179534]

NEW DELHI - India announced the release of 400,000 tonnes of sugar to the market and sugar policy reforms on Thursday to counter a surge in domestic prices.

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GRAINS/OILSEEDS/LIVESTOCK
> EU set to lift partial ban on Argentine beef [nL06336936]

BRUSSELS - The European Union is likely next week to lift its ban on beef imports from northern Argentina, imposed in 2003 due to an outbreak of foot-and-mouth disease (FMD), European Commission officials said on Thursday.

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> EU likely to extend Asia poultry ban to end-June [nL06317983]

BRUSSELS - The European Union is likely to extend its ban on poultry imports from seven Asian nations until the end of June due to uncertainty that deadly bird flu disease is under control in the region, officials said on Thursday.

- - - -

> UPDATE 1-Poland to add up to 700,000T of grain to [nL06681011]

WARSAW - Poland will likely add some 600-700,000 tonnes of grains to European Union intervention stocks by the end of the 2004-2005 season, the state-run Farm Market Agency (ARR) estimated on Thursday.

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> Israeli firm buys S.American corn - trade [nL05395200]

HAMBURG - An Israeli private buyer has purchased about 48,000 tonnes of South American corn and 7,000 tonnes of soymeal in a tender which closed on Wednesday, traders said on Thursday.

The buyer rejected bids for sorghum and made no purchase.

- - - -

> WRAPUP 2-Malaysia banishes bird flu, but Vietnam t [nSP196278]

HANOI/KUALA LUMPUR - Malaysia declared itself free of bird flu on Thursday, but another death prompted Vietnam to step up its fight against the virus that has killed 34 people across Asia and ravaged the region's poultry industry.

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METALS
> Stock rise rattles zinc, but impact seen limited [nL06159203]

LONDON - A hefty increase in zinc stocks will likely put more pressure on metal prices already reeling from fund sell-offs this week, analysts said on Thursday.

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> Zambia copper mine starts up, sees 105,000T in '05 [nL06309691]

LUSAKA - Zambia's Kansanshi Copper Mine, majority owned by Canada's First Quantum (/FM.TO), has started production and will turn out 105,000 tonnes of copper this year, a senior mine official said.

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> UPDATE 2-Harmony, Gold Fields to meet in Moscow th [nL06384778]

JOHANNESBURG - South Africa's Harmony Gold (/HARJ.J) said on Thursday talks with its $5.5 billion takeover target, Gold Fields Ltd. (/GFIJ.J), would resume later this month in Moscow to attempt to find alternatives to the hostile bid.

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> Europe copper premiums steady but direction unsure [n]

LONDON - European copper premiums were steady at the start of 2005, but there was uncertainty about which direction the spot market would take in the first quarter, traders said.

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> UPDATE 1-Euronext in carbon emissions exchange par [nL06141932]

AMSTERDAM - Pan-European bourse operator Euronext (/ENXT.PA)(/ENXT.AS) plans to set up a European carbon emissions exchange with partners Powernext and Caisse des Depots et Consignations within months, the parties said on Thursday.

- - - -

SOFT COMMODITIES > Bulgarian sugar workers mount protest in quota row [nL06432583]

SOFIA - Some 250 sugar-mill workers protested in central Bulgaria on Thursday after their company missed out on a large part of a 250,000-tonne low-tariff sugar import quota, officials said.

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> Kenya to allow coffee farmers to export directly [nL06685900]

NAIROBI - Kenya said on Thursday it would allow coffee farmers to bypass a central auction and export directly to buyers abroad, a reform farmers have sought for many years.

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06 Jan 2005 20:57

06.01.2005 20:54:38 NY gold hits 2-1/2-mo. low, focus on US jobs data

NEW YORK, Jan 6 (Reuters) - U.S. gold futures closed at 2-1/2-month lows Thursday on a third day of heavy liquidation fueled by this week's rallying dollar, which was capping global demand for the precious metals.

Few buyers have stepped in as gold slipped while the dollar gained strength, and dealers said that, with prices nearing key support of $420 an ounce, many traders sat back to await Friday's influential U.S. monthly jobs report for further direction.

February delivery gold shed $5.70 to end at $421.60 an ounce on the New York Mercantile Exchange's COMEX division, after dealing between $428.30 to $421.10, and hitting its weakest close since Oct. 18.

Futures have lost about $16, or 4 percent, since the start of the year, in what dealers said was persistent selling by gold traders reacting to a more robust U.S. currency.

"It's more liquidation in gold, with a possible test of $420" in the near term, said James Quinn, a commodities commentator at A.G. Edwards & Sons.

"It's positions being reduced," said gold desk trader. "There is nothing really new. The market looks like it's seeing scale-down selling consistently through the day. Every rally seems to be sold, and that seems to be the pattern."

The euro sagged to around $1.3170, down slightly from late New York levels Wednesday.

A stronger U.S. currency makes dollar-priced metals less attractive to non-U.S. investors.

Nonfarm payrolls for December, due to be issued Friday morning, were expected to be up 175,000 in December.

Spot gold priced at $420.95/1.70 an ounce, way down from Wednesday's late New York quote at $427.65/8.40. Thursday's late London fix was at $424.35.

Many, but not all, analysts are upbeat on gold over the longer-term.

Andy Smith of Mitsui Global Precious Metals said "cycle" strength in gold, and the commodities sector generally, may be flagging after the huge rise in open interest they enjoyed in November, when U.S. investment banks were buying before their financial year-end.

In his weekly metals note, Smith also suggested that the build-up in bullion held in the U.S. gold exchange-traded fund streetTRACKS appeared to have leveled out following its much-hyped launch on Nov. 18 on the New York Stock Exchange.

As of Jan. 5, the ETF's holdings in bullion stood at 109.14 tonnes for the second straight day -- about 6 tonnes above the peak immediately after the launch, when investors were juicing gold prices to 16-year highs.

COMEX gold futures peaked at $458.70 on Dec. 2.

In other metals, March silver fell 8 cents to $6.455 an ounce, after trading $6.565 to $6.41. Prices are near three-month lows.

Spot silver was quoted at $6.42/45, below its prior New York close at $6.53/56. The fix was at $6.42.

April platinum lost $7.20 to $845.10 an ounce. Spot platinum eased to $843/848.

March palladium rose 45 cents to $183.75 an ounce. Spot dipped to $178.50/184.50.

07 Jan 2005 10:04

07.01.2005 08:54:57 Tokyo gold near 4-month low, funds buy platinum

TOKYO, Jan 7 (Reuters) - Tokyo gold futures fell to their lowest levels since mid-September on Friday as traders slashed positions further amid nervousness about influential U.S. jobs data that could push up the dollar.

The strength of the dollar against the yen is usually positive for yen-denominated gold futures as their value rises in the Japanese currency, but the market is now more focused on falls in the dollar-based spot price.

Spot gold has been pressured by the dollar's uptrend against other major currencies since the start of the year.

Gold found some ground as bargain hunters flocked into the physical market, but speculators were keen to hammer it down to the next support amid deteriorating short-term technical trends.

"The near-term trend looks bearish because of the dollar," said Koji Suzuki, manager at Star Futures Securities.

"But the market doesn't want to sell too heavily as the long-term outlook for the dollar is still bearish and traders are also worried about the Iraqi elections."

The December gold futures contract on the Tokyo Commodity Exchange (TOCOM) closed down 13 yen per gram at 1,425 yen. It fell as low as 1,421 yen, the lowest since Sept. 13.

Other contracts closed down 12 to 16 yen.

The December contract has lost more than 4 percent since Dec. 28, the final trading session on TOCOM last year.

Spot gold was off a two-month low, standing at $421.80/2.30 per ounce as of 0733 GMT, against $420.90/1.70 in New York.

But speculators were keen to test it down towards a 200-day moving average of $410.23.

The market will be watching how the dollar moves after the U.S. payroll figures as a clue to the trend for gold.

Economists expect the U.S. non-farm payrolls data, due at 1330 GMT, to show an increase of around 175,000 jobs in December, better than the 112,000 in November.

The dollar was quoted at $1.3183/90 against the euro , compared with its record low of $1.3670 hit on Dec. 30.

It was at 104.63/66 yen , up about 2 yen since the start of the year.

TOCOM platinum futures rebounded from lows, with most contracts ending higher on buying by hedge funds.

"Although the amount of purchase was not big, the market was supported after seeing buying by hedge funds," said a senior trader at a Japanese commodities brokerage.

"The upward move could have been exaggerated because the market was thin, but it looks like the December contract is now supported around 2,700 yen," he said.

December platinum closed 4 yen per gram higher at 2,754 yen. It moved in a range of 2,740 to 2,763 yen.

Other contracts closed down 2 yen to up 7 yen.

Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.

Closing prices are in yen per gram except for silver, which is in yen per 10 grams:

Closing price Turnover (lots)
GOLD 1,425 (down 13) 97,495
SILVER 216.8 (down 1.9) 3,538
PLATINUM 2,754 (up 4) 26,673
PALLADIUM 610 (unchanged) 461

07 Jan 2005 13:18

07.01.2005 12:09:23 Europe gold edges higher, awaits U.S. jobs data

LONDON, Jan 7 (Reuters) - Gold prices moved slightly higher in Europe on Friday, bouncing off a two-month low hit overnight as the focus moved to U.S. jobs data due out later in the day.

Traders said gold had moved back above $420 an ounce in line with a slightly weaker dollar.

But they did not rule out further selling despite the more positive tone in the market.

By 1051 GMT spot gold had moved up to $423.00/423.75 a troy ounce versus $420.95/421.70 in late New York trading on Thursday.

"It's feeling a little more positive. We plumbed the depths and held the $420 level. I think the dollar is a bit over-stretched after a week of euro and gold selling," one trader said.

"Although who knows what will happen with the jobs data."

The U.S. non-farm payrolls for December, due at 1330 GMT, are the first major figures to be released this year. An improvement in the job market could cement expectations of more U.S. interest rate rises.

That could be positive for the dollar and so negative for gold as it would enhance the appeal of the U.S. currency and possibly suck more fund money out of commodities.

Alan Williamson, analyst with HSBC Bank, said in his daily report that further weakness in gold could not be ruled out, noting talk of large stop-loss sell orders around $419.

Gold dipped briefly below $420 on Thursday to touch $419.90, but then attracted buying and changed tack.

"We continue to believe that any further weakness in gold will prove short-lived and that recent activity merely reflects a retracement, not a reversal in the long term gold rally," Williamson said.

James Moore, analyst with TheBullionDesk.com, said in a daily report that a positive payrolls report might trigger further liquidation in gold, with the potential to push prices as far as $409 -- the lowest since mid-October 2004.

But his longer-term view remained positive so long as gold held that level.

"The continued U.S. trade/current account deficits and the prospect of further Middle East violence ahead of the presidential elections in Iraq...increase the safe haven interest in gold," he said.

Other precious metals were mostly stable.

Traders said silver had been relatively steady after gold's decline and noted physical buying at current levels.

Spot silver rose to $6.46/6.48 an ounce from $6.42/6.45.

Platinum gained to $845.00/849.00 from $843.00/848.00 and was seen trading in a broad $825-875 range, while palladium was indicated at $180.00/183.00 from $178.50/184.50.

07 Jan 2005 18:12

07.01.2005 18:01:18 Gold verliert nach volatilem Handel wegen erholtem Dollar

Zürich, 07. Jan (Reuters) - Gold hat am Freitag weiter nachgegeben und kurz vor Handelsschluss in Europa den tiefsten Stand seit elf Wochen erreicht. Händler führten die nach den Rekordständen gegen Jahresende 2004 anhaltenden Gewinnmitnahmen und die am späten Nachmittag einsetzende Erholung des Dollar als Begründung dafür an. Die US-Devise litt vorübergehend unter dem im Dezember geringer als erwarteten Stellenzuwachs in den USA, erholte sich dann aber auch auf Grund der Kommentare von US-Finanzminister John Snow, wonach die USA ihre Defizitprobleme angehen wolle.

Ein starker Dollar macht das in der US-Devise angeschriebene Gold für Investoren ausserhalb des Dollar-Raums teurer.

"Wir sind derzeit Sklaven der Währungen", sagte ein Händler. Ein anderer erklärte, dass unter 419 Dollar Stopp-Loss-Verkäufe eingesetzt hätten. Ein Edelmetallanalyst wollte weitere Verluste bei Gold nicht ausschliessen, hielt die Schwäche aber für kurzlebig. Sie sei eher ein Einbruch als eine Umkehrung der Gold-Rally der vergangenen Jahre. Die fundamentale Dollar-Schwäche dürfte nicht überwunden sein und eine Rückkehr der US-Devise zu einem Abwärtstrend könnte Gold bis Jahresende auf 480 Dollar hieven.

Gegen Handelsschluss in Europa notierte das gelbe Metall bei 416,85/417,60 Dollar je Feinunze nach 422,80/423,55 Dollar am Vorabend. Kurz zuvor hatte Gold mit 416,35 Dollar den tiefsten Stand seit Mitte Oktober markiert, nachdem es im Tagesverlauf bis auf 424,70 Dollar gestiegen war.

Das Goldfixing in London erfolgt am Nachmittag bei 422,20 Dollar nach 423,15 Dollar am Vormittag und 424,35 Dollar am Donnerstagnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.831/15.081 (Vortag 15.825/16.075) sfr an.

par/och

07 Jan 2005 18:14

07.01.2005 17:47:34 Commodities News Summary

TOP NEWS
> UPDATE 1-Europe gold hits 11-week low on dollar [nL07695652]

LONDON - Spot gold prices stumbled again in Europe on Friday afternoon after the dollar changed tack and strengthened, pushing the precious metal back below $420 an ounce for the second day running, dealers said.

- - - -

> NY gold slips with choppy euro after jobs report [nN07375197]

NEW YORK - U.S. gold futures fell below 2-1/2-month lows Friday morning as the dollar gyrated against key currencies following a weaker-than-expected U.S. payrolls report, dealers and analysts said.

- - - -

> NY copper turns lower after dollar rallies [nN07402966]

NEW YORK - COMEX copper futures surrendered early gains and turned lower Friday morning when the dollar reversed course and launched its latest rally against the euro as players rethought the U.S. employment report, traders said.

- - - -

> CBOT Jan soybeans rally over 10 cents on firm cash [nN07697346]

CHICAGO - Chicago Board of Trade January soybean futures rallied more than 10 cents by midmorning Friday on firm cash markets as values at the U.S. export market were strong, traders said.

- - - -

METALS
> Chinese ports jammed as iron ore arrives [nPEK196266]

BEIJING - Ports in north and east China are jammed by ships carrying iron ore, with vessels waiting as long as two weeks before being allowed to berth, industry and port officials said on Friday.

- - - -

> INTERVIEW-UPDATE 1-China iron ore demand seen up [nSEO237579]

SEOUL - Chinese iron ore demand is expected to hold up this year and growth should top 20 percent from 2004, a senior executive at the world's largest iron ore miner, CVRD (/VALE5.SA) (/RIO.N), told Reuters on Friday.

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> China copper product makers rebuild stocks [nHKG258848]

HONG KONG - Copper product makers in China are slowly building stocks of the metal after running down most of their inventories last year, traders said on Friday.

- - - -

> Europe copper premiums steady to up, analysts say [nL07372993]

LONDON - European copper premiums were steady at the start of 2005, but some analysts said on Friday a lack of physical stocks could push premiums up while others thought they would remain flat.

- - - -

> UPDATE 1-Europe copper smelters see TC/RCs staying [n393094]

HAMBURG - Copper concentrate treatnment and refining charges (TC/RCs) will remain high in coming months, European smelters said on Friday.

- - - -

> Minor metals-Selenium upbeat at start of year [nL07638219]

LONDON - Selenium prices began 2005 the way they ended last year, holding around their highest since 1977 and expected to rise on chronic undersupply, traders said.

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> UPDATE 2-Chile registers record high trade surplus [nN07679123]

SANTIAGO, Chile - Chile recorded its highest ever annual trade surplus in 2004 at $9.044 billion due to soaring prices for its main export copper, according to central bank data released on Friday.

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> UPDATE 1-Glamis sees gold production up 70 pct [nN07681791]

TORONTO - Glamis Gold Ltd. (/GLG.TO) said on Friday it sees production growing by 70 percent in 2005, helped by output from the start up of a new mine in Mexico.

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GRAINS/OILSEEDS/LIVESTOCK
> Showers forecast for Brazil soy over weekend [nN0774702]

RIO DE JANEIRO, Brazil - Showers are forecast in Brazil's center-west and southern soybean areas over the weekend, but they will be lighter and more irregular than in recent days, private forecasters Somar said on Friday.

- - - -

> US farmers may seek change in mad-cow reporting [nN03656074]

CHARLOTTE, N.C. - The largest U.S. farm group is on the verge of asking the Agriculture Department to stop announcing suspect mad cow test results, which can roil the cattle markets, until the USDA has final data confirming that an animal is healthy or infected.

- - - -

> Canada says calves of infected cow did not die BSE [nN07693529]

OTTAWA - The two calves born to a cow infected with mad cow disease discovered in Canada last month both died of natural causes, the Canadian Food Inspection Agency said on Friday.

- - - -

SOFT COMMODITIES > India sugar prices dip on govt move to hike supply [nBM231649]

BOMBAY - Sugar prices in India, the world's largest consumer, fell about 4 percent on Friday after the government said it would release an additional 400,000 tonnes of stocks for the current quarter.

- - - -

> Brazil's coffee belt seen showery for next 10 days [nN0753755]

RIO DE JANEIRO, Brazil - It will be showery in Brazil's coffee belt over the next 10 days, aiding crop development, private forecasters Somar predicted Friday.

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> UPDATE 1-Ivory Coast cocoa arrivals lose ground [nL07703802]

ABIDJAN - Cocoa arrivals at ports in Ivory Coast reached 546,563 tonnes between October 1, 2004 and January 2, 2005, according to an estimate by major exporters on Friday.

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07 Jan 2005 20:54

07.01.2005 20:31:41 NY gold ends at 2-3/4-month low, tracks weaker euro

NEW YORK, Jan 7 (Reuters) - U.S. gold futures closed at their lowest since mid-October on Friday amid speculative selling sparked by a jump in the dollar against the euro after traders shrugged off a weaker-than-expected U.S. payrolls report.

Trading sources said gold fell as the euro tanked when a post-payrolls rally ran out of steam. The two initially rose in tandem on ideas the jobs number might be a strong one.

The U.S. economy made 157,000 new jobs in December, short of forecasts for 175,000. Payrolls growth in November and October was revised higher to 137,000 and 312,000, respectively.

Gold for February delivery shed $2.10 to end at $419.50 an ounce on the New York Mercantile Exchange's COMEX division, its cheapest close since Oct. 13, after trading a session range between $425.80 and $417.10.

Leonard Kaplan, president of Prospector Asset Management, said the metals and currency markets overreacted to the jobs number, which he felt was not too far from expectations, adding that fund selling pushed gold down.

"I think we'll head lower (in gold), maybe to $405-410. I'm still bearish," he added. "But, we could go a lot lower than that because the markets are so dominated by the funds that the markets tend to overshoot."

The euro hovered at $1.3060 in the afternoon, after getting hit by technical selling, which was around 6 cents below its recent all-time high against the dollar.

A stronger U.S. currency makes dollar-priced metals less attractive to non-U.S. investors.

Liquidation on this week's dollar strength has shaved more than 4 percent off of gold prices since the start of the year. The market was up nearly 6 percent in 2004 as investors stashed more of their money in the market amid heightened international tensions, a weak dollar and growing fears of inflation, according to analysts.

COMEX February futures hit a 16-year peak of $458.70 on Dec. 2.

"I don't think the dollar is going to really strengthen all that much in the first quarter," said Scott Meyers, analyst at Pioneer Futures. "I think it's going to be in a range and gold will probably be in range also.

"We're not going to $455, but we're not going to $410 either. I'm inclined do think we're going to work our way back to $430, and maybe $430-440 will be the trading range."

COMEX March silver slipped 0.7 cent to $6.448 an ounce, trading $6.595 to $6.39. Spot silver hit $6.41/44, just below the previous close at $6.42/45. The fix was at $6.46.

April platinum fell $4.40 to $840.70 an ounce. Spot platinum traded to $839/844.

March palladium rose 25 cents to $184 an ounce. Spot stuck around $180/186.

10 Jan 2005 09:44

10.01.2005 07:18:43 Gold rises in Asia as euro crawls higher

(Updates prices, adds price direction on para 15)

SINGAPORE, Jan 10 (Reuters) - Gold firmed in trading in Asia on Monday, tracking a slight rise in the euro against the U.S. dollar, but trading was thinned by a holiday in Japan, a key market.

Spot gold was quoted at $419.50/420.25 an ounce at 0555 GMT, compared with $418.40/418.90 an ounce late in New York on Friday. Key support was pegged at $415 an ounce.

Gold fell to $416.15 an ounce on Friday -- its lowest level since Oct. 19 -- as the dollar rallied, reducing the yellow metal's safe-haven appeal.

"There's just very little going on, to be honest," said Martin Mayne, associate director at N M Rothschild in Sydney.

"But as we come lower, there will be bits and pieces of physical buying around."

Gold has tracked movements in the dollar against other currencies in recent weeks. Early in December, a sinking dollar had pushed gold up to a 16-1/2-year high of $456.75.

The December TOCOM gold futures contract closed down 13 yen per gram at 1,425 yen on Friday.

Trading in Japan will resume on Tuesday.

Some dealers pegged key resistance at $425 an ounce for spot gold but any gains would be restricted by a firming U.S dollar.

The U.S. currency strengthened on Friday after U.S. Treasury Secretary John Snow said the Bush administration supported a strong dollar and wanted to cut the budget deficit.

The remarks come days after the minutes from a Dec. 14 meeting of the U.S. Federal Reserve indicated the Fed may raise interest rates faster than expected.

The euro touched a high of $1.3091 in Asia before easing to $1.3073. But that was higher than $1.3051 late in New York on Friday and off $1.3023, its lowest since Nov. 23.

Bullion dealers reported some buying interest at the lower levels but many investors and jewellers were waiting for gold prices to stabilise before making fresh purchases.

"Clients just wait and see because (gold price) is fluctuating," said Leon Lee, dealing officer at the Bank of China in Hong Kong. "I think gold may rebound to around $425. Gold was oversold last week."

But other dealers said gold would head lower in coming days if the dollar continued its uptrend. A breach of the 200-day moving average which now stands at around $405 could lead gold back to the $390 to $410 range, they said.

In other precious metals, spot silver was at $6.42/6.45, against $6.41/6.44 late in New York.

Spot platinum was at $842/847 an ounce, versus $839/844.

Sister metal palladium was hardly changed at $180/185 an ounce.

10 Jan 2005 14:41

10.01.2005 13:25:35 Silver fixes up, Europe gold nudges higher, eyes dollar

* Silver fixes higher in Europe at 647.00 cents per ounce compared with previous fix at 646.00. Spot market moves up with slightly higher gold prices to $6.45/6.48 by 1215 GMT from $6.41/6.44 previously.

* Silver forward rates on Reuters page indicated at 2.177, 2.172, 2.130 and 1.982 for one, three, six and 12 months respectively.

* Spot gold firms to $420.75/421.45 per troy ounce by 1215 GMT from $418.40/418.90 late in New York on Friday.

* Market tries to consolidate after bullion fell to $416.15 on Friday -- its lowest since mid October -- as dollar jumped. Market seen vulnerable due to dollar strength.

* Euro last at $1.3097.
* Platinum at $843.00/847.00 from $839.00/844.00.
* Palladium broadly flat at $180.00/185.00.

10 Jan 2005 14:42

10.01.2005 12:50:24 Gold rises cautiously in Europe, seen vulnerable

LONDON, Jan 10 (Reuters) - Gold crept higher in Europe on Monday morning but prices looked vulnerable, with the metal's shine dulled by dollar strength, dealers said.

Spot gold was at $421.00/421.75 by 1130 GMT, compared with $418.40/418.90 late in New York on Friday.

Dealers said bullion was attempting to recover some poise after prices fell to their lowest since mid October at $416.15 on Friday when the dollar jumped against the euro.

"Gold is now looking oversold according to daily charts but people are focusing on the euro/dollar and that's put a bearish tone on things," one dealer said, adding that support for gold was seen around $418.

Investors focused on comments from U.S. Treasury Secretary John Snow, who repeated Washington's desire to support a strong dollar policy.

A firmer U.S. currency makes dollar-denominated gold more expensive for investors holding other currencies such as euros or yen.

The U.S. budget deficit has been a key driver of the dollar's recent tumble to record lows against the euro, along with the country's growing current account deficit and worries about how to fund the shortfall.

Despite Snow's comments, analysts were sticking with a weaker outlook for the greenback longer term because of the U.S.'s struggle to reduce its deficits while the Bush administration pushes for permanent tax cuts.

Speculative interest, measured via long positions held on the New York COMEX gold futures market, fell according to data released on Friday -- reflecting the start of last week's fund liquidation.

The net speculative long position in COMEX gold fell to 73,243 contracts as of Jan. 4, from 98,753 contracts on Dec. 28, but analysts said the lightening of positions would only continue while the dollar rose.

"We continue to view this current sell-off in gold as a temporary phenomenon and that once the correction in the dollar is done, gold will rally, UBS Investment bank analyst John Reade said in a daily report.

"We hold our one-month forecast of $440 per ounce and see this as an attractive level to buy gold," he added.

Silver rose slightly in step with gold to $6.45/6.48 from $6.41/6.44 in New York late on Friday.

Platinum rose to $843.00/847.00 from $839.00/844.00, while palladium was flat at $180.00/185.00.

Hecla Announces Acquisition of Significant Gold District in Venezuela
COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Jan. 10, 2005--Hecla Mining Company (NYSE:HL) has signed a letter of intent to acquire the Guariche gold project, which would more than double the company's land position in Venezuela. Hecla is the largest gold producer in Venezuela, with significant land holdings in the El Callao and El Dorado gold districts. With the acquisition of the Guariche property, the company will have some of the most prospective gold targets in three separate gold districts in the country. To obtain the property, Hecla will acquire the shares of the subsidiary corporations of Triumph Gold Corp., which collectively control the concessions. The transaction is subject to approval of Hecla's board of directors, as well as the shareholders of Triumph. Triumph's board of directors has already given authorization to proceed with the transaction.

Hecla's President and Chief Executive Officer, Phillips S. Baker, Jr., said, "This will more than double our land position in Venezuela to over 150 square miles in three districts. The Guariche gold district is separate and distinct from the El Dorado and El Callao districts where we already hold ground, giving us the best land position in the country. Guariche has many of the same high-grade vein characteristics as the other two prolific gold districts, and in addition, a potentially large surface deposit has been previously identified on the property. This extremely prospective area has had little modern exploration. We have been very successful in Venezuela with our La Camorra mine and are now developing our second mine, Mina Isidora, in the El Callao area. The host rock at Guariche is the same as in the historic El Callao gold district. We believe in the prolific geology in Venezuela, and expect to be mining there for a long time."

The project consists of over 20,000 hectares of mineral concessions in the country's Bolivar State. Robust veins have been identified from historic alluvial mining in the area, and Triumph reports surface gold mineralization previously identified on the property of 13.6 million tonnes at 2.03 grams per tonne. Extensive drilling, engineering and other work would be necessary to confirm the mineralization.

Hecla has proposed to issue to Triumph 1.24 million units of stock, each unit consisting of one common stock and one warrant entitling the holder to purchase one additional common share for a period of three years. The warrant exercise price shall be the average closing price of Hecla's shares for the 10 days preceding closing.

In addition to the stock and warrants, Hecla has agreed to a cash payment to Triumph of $75,000, as well as giving Triumph the right to earn in to two of Hecla's other Venezuelan concessions by conducting exploration on the properties. Hecla has the right to buy back into the properties and operate them. Hecla also has a back-in right on Triumph's Las Flores property. Baker said, "This proposal is a win-win for both Hecla and Triumph. It allows us to continue our growth in Venezuela, gives Triumph greater exposure to other Venezuelan gold districts, and lets us participate in the exploration expertise provided by Triumph. Through Triumph's exploration participation, we will be able to accelerate the exploration on two more of our properties."

Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines and processes silver and gold in the United States, Venezuela and Mexico. A 113-year-old company, Hecla has long been well known in the mining world and financial markets as a quality silver and gold producer. Hecla's common and preferred shares are traded on the New York Stock Exchange under the symbols HL and HL-PrB.

Statements made which are not historical facts, such as anticipated payments, litigation outcome, production, sales of assets, exploration results and plans, costs, prices or sales performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production, exploration risks and results, political risks, project development risks and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.

Cautionary Note to Investors -- The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "resource," that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.

Hecla's Home Page can be accessed on the Internet at: http://www.hecla-mining.com.

CONTACT: Hecla Mining Company
Vicki Veltkamp, 208-769-4144

SOURCE: Hecla Mining Company

10 Jan 2005 18:41

10.01.2005 16:51:13 NY gold inches up from lows early on mixed buying

NEW YORK, Jan 10 (Reuters) - U.S. gold futures climbed from near three-month lows Monday morning on short-covering and commercial buying due to a retreating dollar, dealers said.

Gold for February delivery advanced $1.10 to $420.60 an ounce by 10:26 a.m. EST (1526 GMT) on the New York Mercantile Exchange's COMEX division, dealing in a relatively tight range from $418.40 to $422.30.

Friday, futures finished at their cheapest price since Oct. 13 at $417.10, as the dollar rose 5 cents during the week from a recent all-time low against the euro.

Chart-based selling on Monday whacked the U.S. currency, however, which made gold more attractive to non-U.S. buyers.

"I think we were oversold last week, and there is short covering and trade buying due to the higher euro," said a COMEX gold floor trader. "But this just may be a dead cat bounce as long as we stay below the 100-day moving average at $426-$427."

Even though crude oil rallied to a five-week high Monday, speculators were not buying gold on that move, though it did cap selling at gold's highs, the trader said.

COMEX gold has lost about 4 percent in value since the start of the year, after rising almost 6 percent in 2004 on safe-haven buying fueled by acute geopolitical tensions, dollar weakness and rising inflation fears due to costlier oil.

Midmorning in New York, the dollar was down a third of a percent at $1.3103 per euro , after having risen to $1.3023 on Friday after U.S. Treasury Secretary John Snow called for a stronger dollar.

Against the yen , the dollar was half a percent lower at 104.26 yen.

Traders said the forex market was awaiting U.S. November trade balance data on Wednesday, with the figure forecast to show a deficit just slightly below the record $55.46 billion shortfall recorded in October.

The Commodity Futures Trading Commission's Commitments of Traders data showed the net fund long position in COMEX gold futures dropped to 73,243 contracts as of last Tuesday, from 98,753 lots a week earlier.

It was the lightest exposure since a trough hit Sept. 21 at 54,856 lots, and put the market in a healthier position than it was on Nov. 23, when it towered at a massive 138,632 lots, Tim Evans, senior commodity analyst at IFR Markets, said.

But the cycle of long liquidation could still have some distance to run, even taking into account the heavy selling through the end of last week, as fund net length fell as low as 33,315 lots back in July, he said in a weekly report.

Evans pegged technical support in February futures at $417.70 and $417.10, followed by $411.30/50 and $400, with resistance at $432.90 and $446.20.

Spot gold priced at $419.20/420.00, up from $418.40/8.90 late Friday in New York. The afternoon fix in London was at $420.

COMEX March silver rose 1.2 cents to $6.46 an ounce, trading $6.42 to $6.50. Spot silver was at $6.42/45, hardly changed from $6.41/44 previously. It fixed at $6.47.

April platinum gained $8.30 to $849 an ounce. Spot platinum traded up to $844/848.

March palladium rose $4 to $188 an ounce. Spot reached $185/190.

10 Jan 2005 18:42

10.01.2005 17:22:09 Commodities News Summary

TOP NEWS
> UPDATE 2-Bird flu kills Vietnam teenager, new case [nHAN206138]

HANOI - A 16-year-old Vietnamese girl who battled bird flu for more than two weeks has died, the country's third casualty in 10 days from the disease that killed dozens and devastated Southeast Asia's poultry industry last year.

- - - -

> NY gold inches up from lows early on mixed buying [nN10385225]

NEW YORK - U.S. gold futures climbed from near three-month lows Monday morning on short-covering and commercial buying due to a retreating dollar, dealers said.

- - - -

> UPDATE 1-Gold rises cautiously in Europe [nL10571558]

LONDON - Gold firmed in Europe on Monday but sentiment was wobbly, with the metal's shine dulled by recent dollar strength, dealers said.

- - - -

> COMEX copper drifts up on weak dollar, volume light[nN10381520]

NEW YORK - Copper futures held to modestly higher levels Early Monday in response to a faltering dollar, but traders said activity was light and prices stayed in a narrow range.

- - - -

> High oil prices bolster global ethanol market [nL07668818]
LONDON - Global production of the renewable fuel ethanol
will boom over the next few years if oil prices stay high,
analysts said.

- - - -

> ANALYSIS-WTO sugar case to force changes in EU [nL10460499]

BRUSSELS - An international trade challenge against Europe's sugar regime may well force the EU to revise plans for shaking up sugar policy, a regime barely altered since the late 1960s, analysts and officials say.

- - - -

> UPDATE 1-Africa summit tackles continent's crises [nL10519222]

LIBREVILLE - Three of Africa's big crises -- strife in Ivory Coast, fighting in Congo and the humanitarian emergency in Sudan's Darfur -- provide a daunting agenda for an African Union summit that began on Monday in Gabon.

- - - -

METALS > Codelco sells 33,000 T copper above $125/T -trade [nL10419186]

LONDON - Chilean producer Codelco sold 33,000 tonnes of copper via tender at premiums above $125 a tonne, trade sources said on Monday.

- - - -

> Key metals record largest ever falls in 2004 [nL10431614]

LONDON - Reported global stocks of all the main London Metal Exchange (LME) metals probably fell slightly more than in 1995, the last year in which there was a major inventory fall, Macquarie Bank said on Monday.

- - - -

> INTERVIEW-Zambia to raise copper output to 550,000 [nL10535226]

LUSAKA - Zambia will raise finished copper production to 550,000 tonnes this year from around 400,000 tonnes in 2004, mines minister Kaunda Lembalemba said on Monday.

- - - -

> Chile Teniente sees '05 copper output 430,000 t [nN10355683]

RANCAGUA, Chile - Chile's El Teniente mine sees 2005 output of refined copper at 430,000 tonnes, down 1.6 percent from 2004, due to a reduction in the grade of mineral being extracted from the mine, the mine's general manager, Ricardo Alvarez, told reporters on Monday.

- - - -

> UPDATE 5-Norway's Orkla buys control of metals firm[nL10349109]

OSLO - Norwegian food-to-media group Orkla (/ORK.OL) boosted its ownership in metals maker Elkem (/ELK.OL) to 50.03 percent on Monday and launched a takeover bid for the rest, valuing the whole company at $1.85 billion.

- - - -

> Precious metal to outperform base in '05-JP Morgan [nL10715433]

LONDON - The performance of major commodity markets will be weaker this year than in 2004, as only some of last year's supportive factors remain, but precious metals will outshine base, broker JP Morgan said.

- - - -

> Dubai Aluminium eyes 12.6 pct hike in 2005 sales [nL09630179]

DUBAI - State-owned Dubai Aluminium Company Ltd (Dubal) said on Sunday its sales reached 755,000 tonnes last year and that it expected to boost them by 12.6 percent in 2005.

- - - -

GRAINS/OILSEEDS/LIVESTOCK
> RPT-Farm group criticism of U.S. mad-cow rules [nN10182599]

CHARLOTTE, N.C. - The United States will end its mad cow-inspired ban on Canadian cattle on March 7 despite rising criticism from farm groups, Agriculture Secretary Ann Veneman said on Sunday, while faulting Japan and South Korea to take a similar step with U.S. beef.

- - - -

> Dry spell continues over southern Brazil soy farms [nN1074702]

SAO PAULO, Brazil - The dry spell in Brazil's No. 3 soybean-growing state will continue at least through January 20, despite isolated showers that passed over the weekend, meteorologists and agronomists said on Monday.

- - - -

> China's 2004 cotton output at 10-year high -media [nPEK224179]

BEIJING - China, the world's largest cotton grower and consumer, produced 6.32 million tonnes of cotton last year, state television quoted the National Development and Reform Commission as saying on Monday.

- - - -

> UPDATE 1-China not accepting Brazilian soy import [nPEK231613]

BEIJING - China, the world's top soybean buyer, is not accepting applications for imports of genetically modified (GMO) soybeans from Brazil, the world's No.2 soybean exporter, a Chinese farm ministry official said on Monday.

- - - -

> RPT-UPDATE 1-China ups tax rebates for corn export [nHKG201123]

HONG KONG - Beijing has raised tax rebates for corn exports in 2005, which should help China continue exporting the grain to nearby countries such as South Korea, if freight rates recover further, traders said on Monday.

- - - -

> Spain dry but drought talk premature -met office [nL10410882]

MADRID - Rainfall in Spain in the past four months has been well below normal but talk of drought is premature, the meteorological office said on Monday.

- - - -

SOFT COMMODITIES > EU outlines sugar compensation plan for ex-colonies[nL10581524]

BRUSSELS - The EU has sketched out criteria for compensating former colonies that will lose out from its planned sugar reform and plans to pay them hundreds of millions of euros over eight years, documents showed on Monday.

- - - -

> UPDATE 1-German Q4 2004 cocoa grind up 2.7 pct [nL10554546]

HAMBURG - Germany's fourth quarter 2004 cocoa grind rose 2.7 percent on the year to 57,003 tonnes, the association of German confectionery producers BDSI said on Monday.

- - - -

> Ivorian cocoa product exports from San Pedro slide [nL10446865]

ABIDJAN - Exports of semi-finished cocoa products from Ivory Coast's San Pedro port totalled 5,372 tonnes in the first three months of the 2004/05 (Oct-Sept) season, down around five percent from a year ago, port data showed on Monday.

- - - -

> RPT-British Sugar sees UK 04/05 output 1.3-1.4 mln [nL10170496]

WISSINGTON, England - British Sugar expects Britain's sugar production from beet in 2004/05 to stand at 1.3-1.4 million tonnes, a senior official said on Friday.

10 Jan 2005 21:05

10.01.2005 20:45:32 NY gold closes slightly firmer, mirroring euro

NEW YORK, Jan 10 (Reuters) - U.S. gold futures settled a shade higher on Monday, and above Friday's near three-month lows, boosted by light trade and speculative buying amid a softer U.S. dollar versus the euro, floor traders said.

Gold for February delivery inched up 20 cents to $419.70 an ounce on the New York Mercantile Exchange's COMEX division, after dealing between $418.40 and $422.30.

Futures finished Friday at their lowest mark since Oct. 13 at $417.10, after the dollar jumped 5 cents last week from a recent all-time low against the euro.

But chart-based selling on Monday in the dollar ended its New Year's rally and boosted gold by making the dollar-denominated metal more attractive to non-U.S. buyers.

"There is short covering and trade buying due to the higher euro," said one COMEX gold trader. "But this just may be a dead cat bounce as long as we stay below the 100-day moving average at $426-$427."

Even though crude oil rallied to a five-week high Monday, speculators were not buying gold on that move, though it did cap selling at gold's highs, the trader said.

COMEX gold has lost about 4 percent in value since the start of the year, after rising almost 6 percent in 2004 on safe-haven buying driven by acute geopolitical tensions, dollar weakness and inflation fears due to higher oil prices.

Midafternoon in New York, the dollar was down at $1.3090 per euro , after having risen to $1.3023 on Friday when U.S. Treasury Secretary John Snow called for a stronger dollar. The greenback fell to an all-time low against the euro at $1.3667 on Dec. 30.

Traders said they were turning their attention to U.S. November trade balance data due on Wednesday, with the figure forecast to show a deficit just slightly below the record $55.46 billion shortfall recorded in October.

The Commodity Futures Trading Commission's Commitments of Traders data showed the net fund long position in COMEX gold futures fell to 73,243 lots as of last Tuesday, Jan. 4, from 98,753 lots at the previous weekly report.

This is well off from the record net long position of 173,241 contracts set Dec. 7, according to Citigroup Smith Barney research.

"Viewed in this light, gold prices have been remarkably resilient, likely reflecting the willingness of fabricators and Asian investors to accumulate on weakness," Citigroup Smith Barney said in a weekly metals report.

IFR Markets analyst Tim Evans pegged support in February futures at $417.70, and then at $417.10, $411.30/50 and $400, with resistance seen up at $432.90 and $446.20.

COMEX March silver rose 0.2 cent to end at $6.45 an ounce, trading from $6.42-$6.50. Spot silver was flat from its prior close at $6.41/44. Monday's fix was at $6.47.

NYMEX April platinum gained $6.20 to $846.90 an ounce. Spot platinum last fetched $846/850.

March palladium rose $7.60 to $191.60 an ounce. Spot reached $188/193.

11 Jan 2005 10:03

11.01.2005 08:23:47 TOCOM gold hits 4-month low on yen, weak COMEX

TOKYO, Jan 11 (Reuters) - Tokyo gold futures extended losses on Tuesday to a fresh four-month low, pressured by a firmer yen and a fall in COMEX gold to a nearly three-month nadir while Tokyo was closed for a three-day weekend, brokers said. The December gold contract on the Tokyo Commodity Exchange (TOCOM) fell as far as 1,409 yen per gram, the lowest for TOCOM's benchmark gold since Sept. 9.

At the close it was at 1,417, down eight yen from Friday's close. TOCOM was closed on Monday for a national holiday.

Other months were three to eight yen lower.

The market looks technically weak, as the benchmark contract has lost 65 yen or 4.4 percent since the beginning of this year, in line with a retreat in spot gold prices, a Tokyo broker said.

"The benchmark contract is poised to test key support at 1,400 yen in the short-term," the broker said, adding that the contract could slide as far as 1,382 yen if it breaks that level.

Sentiment towards TOCOM gold deteriorated as spot gold came under pressure due to the dollar's recovery against major currencies, which reduced the safe-haven appeal of the yellow metal. Spot gold was quoted at $421.75/422.50 an ounce at 0630 GMT, up from $419.00/50 in late New York. On Friday, bullion fell to $416.15 an ounce, its lowest since Oct. 19.

Brokers said the currency market's movement would continue to be a major trading factor for gold, and that U.S. trade data due on Wednesday would provide clues to the market's direction.

At 0630 GMT, the dollar was at 103.93/98 yen, down from 104.34 in late U.S. trading. The euro was at $1.3130/34, up from $1.3073 in late New York trade.

The dollar fell against the euro on Tuesday as dealers waited for U.S. trade deficit figures to decide whether to keep buying back the U.S. currency, dealers said.

An upbeat figure could offer some support for the dollar, which has received a battering since the market started fixating on the U.S. trade and budget deficits, they said.

A Reuters poll forecast the deficit narrowed to $54.0 billion in November from a record $55.46 billion in October, as slow overseas demand was offset by a drop in oil prices and a weaker dollar.

In the platinum market, TOCOM's benchmark December contract settled up 22 yen per gram at 2,776, tracking gains in New York.

Volume was thin at 33,748 lots, less than one-third of gold's turnover at 111,673 lots, as investors were more interested in volatile gold and energy futures markets in Tokyo, brokers said. Spot platinum was quoted at $853.00/858.00 an ounce at 0630 GMT, up from $846/850 in late New York.

Below are closing prices for TOCOM's most active precious metals contracts, with the day's turnover for each metal.

Closing prices are in yen per gram except for silver, which is in yen per 10 grams:

For open interest details please click
Closing price Turnover (lots)
GOLD 1,417 (down 111,673
SILVER 216.9 (up 0.1) 2,759
PLATINUM 2,776 (up 22) 33,748
PALLADIUM 640 (up 30) 1,298

11 Jan 2005 13:24

11.01.2005 12:16:35 Europe gold treads higher supported by firmer euro

LONDON, Jan 11 (Reuters) - Gold moved higher in Europe on Tuesday, with investors encouraged by a slightly firmer euro against the dollar, but some dealers were not ready to rule out further losses.

Spot gold stood at $422.25/423.00 by 1107 GMT compared with $419.00/419.50 late in New York on Monday.

"The market is pretty steady now after three days of consistent selling. We had some good buying this morning helped along by the euro," one dealer said.

Bullion reached a near 16-1/2 year peak in December at $456.75 an ounce, but since the start of this year the metal has lost more than 3-1/2 percent as the dollar fought back from record lows against the euro.

But the U.S. currency extended its pullback from seven-week highs against the euro on Tuesday as investors digested comments from U.S. Treasury Secretary John Snow on the dollar and braced themselves for Wednesday's U.S. trade data. The euro was last at $1.3156/60.

The trade figures for November could highlight the lasting imbalances in the U.S. economy which have weighed on the dollar over the last three years.

A weaker dollar makes gold more attractive to non-U.S. investors, but some dealers said investors could shy away from the market while prices stay under resistance at $427.

"The downtrend is still intact though bearish sentiment stalled to some extent," Alexander Zumpfe of Dresdner Kleinwort Wasserstein said in a daily report.

A Reuters poll forecast the trade deficit to narrow to $54.0 billion in November from a record $55.46 billion in October, as a weaker dollar and cheaper oil prices more than compensated for sluggish foreign demand.

Zumpfe said strong trade figures and the expectation of further positive U.S. economic data later this week could cap the downside for the dollar.

Platinum group metals moved higher as investor buying came back into the market.

Spot platinum rose to $855.00/859.00 from $846.00/850.00 late in New York on Monday, while palladium firmed to $191.00/195.00 from $188.00/193.00 previously.

Analysts were still bearish overall on the outlook for both metals, with platinum seen moving into surplus and palladium seen remaining in chronic oversupply.

Silver followed gold, with the spot price moving up to $6.52/6.55 from $6.41/6.44.