Rohstoffnews

31 Dez 2004 17:50

31.12.2004 16:09:30 Gold glänzt auch letzten Tag des Jahres

London/Zürich, 31. Dez (Reuters) - Gold hat sich auch am Freitag in einem dünnen europäischen Handel freundlich gezeigt. Es kam nur mehr vereinzelt zu Positionsanpassungen, sagten Händler. In den USA bleiben die Märkte am letzten Tag des Jahres zu und in London schlossen sie früher.

Das gelbe Metall notierte zuletzt bei 438,70/439,40 Dollar je Feinunze nach 437,00/437,50 Dollar am Vorabend. Das Vormittagsfixing in London - das einzige am Freitag - erfolgte bei 438,00 Dollar nach 435,60 Dollar am Donnerstagnachmittag.

Mit einem Anstieg von fast sechs Prozent hat Gold 2004 seine Rally fortgesetzt. Anfang Dezember hatte gelbe Metall mit 456,75 Dollar den höchsten Stand sei 16-1/2 Jahren erreicht. Motor des nun bereits drei Jahre andauernden Anstiegs ist die Dollarabwertung; ein schwacher Dollar macht das in der US-Devise angeschriebene Gold für Investoren aus anderen Währungsräumen günstiger.

Und Analysten schliessen nicht aus, dass Gold Anfang 2005 die Marke von 500 Dollar knacken könnte, weil die Schwäche des Dollar angesichts der hohen US-Haushalts- und Leistungsbilanzdefizite anhalten dürfte.

Eine Schweizer Grossbank gab den Gold-Kilopreis am Freitagnachmittag mit 15.880/16.130 (Vorabend 15.840/16.090) sfr an.

Silber wurde zuletzt mit 6,79/6,82 Dollar gehandelt. Das Schwestermetall von Gold hat im zu Ende gehenden Jahr fast 15 Prozent an Wert gewonnen. Im April hatte Silber mit knapp 6,80 Dollar je Feinunze den höchsten Stand seit 17 Jahren erreicht.

par

03 Jan 2005 09:58

03.01.2005 07:08:06 Gold falls in Asia on firm dollar, trade thin

(Updates prices, adds quotes in paras 15 to 16)

SINGAPORE, Jan 3 (Reuters) - Gold shed around $5 an ounce on Monday in the year's first trading day, losing some of its shine to a firmer dollar and the holiday absence of investors in Japan.

Platinum and palladium were little changed from London's last quoted levels, while silver was down, tracking gold's decline.

Gold gained nearly 6 percent in 2004, and dealers expected the metal to rise further this year as violence in Iraq, high oil prices and the dollar's poor outlook raise gold's safe-haven appeal.

Spot gold fell to a three-week low at $432.90 an ounce before rebounding to $434.25/435.25 by 0545 GMT. That compared with $438.15/438.45 last quoted in London on Friday, when the New York market was closed for the year-end holiday.

Tokyo's gold futures reopen on Tuesday after a long New Year's holiday.

Physical trading was quiet, with jewellery manufacturers and investors showing little interest in the metal despite falling prices.

"(There's) not much buying at this level. Maybe because this is just the start of the year," said Leon Lee, dealing officer at the Bank of China in Hong Kong, a key bullion trading city in East Asia.

Gold would find good support at $432 an ounce, said Lee.

In the currency market, the euro was at $1.3441 , versus around $1.3558 in late U.S. trade and off Thursday's record high at $1.3667.

A firmer dollar makes dollar-priced gold more expensive for holders of other currencies.

But currency dealers said the euro was expected to continue to firm this year on concerns about whether the United States can attract enough foreign capital to finance its massive current account deficit.

Dollar weakness has been the dominant factor behind gold's three-year run higher, with the metal's price reaching a 16-½ year high at $456.75 an ounce in early December.

Some dealers said expectations that last week's devastating tsunamis would ignite heavy safe-haven buying in Asia had failed to materialise.

Gold is often bought as an investment that can be sold in times of trouble.

"I think it's irrelevant to link natural disaster with safe-haven buying," said one dealer in Singapore, a centre for bullion trading in Southeast Asia.

"When you talk about safe-haven buying, you are talking about economic disaster," he added.

More than 140,000 people were killed after a 9.0 magnitude undersea earthquake off the Indonesian island of Sumatra last Sunday triggered tsunamis across the Indian Ocean coastal areas.

In other precious metals, spot platinum was quoted at $859/864 an ounce versus $859/861 in London. Sister metal palladium was little changed at $183/188 an ounce.

Silver was at $6.69/6.73 an ounce, compared with $6.81/6.83 in London.

03 Jan 2005 17:57

03.01.2005 16:44:40 Gold prices slide to 2-mth low on firmer dollar

NEW YORK, Jan 3 (Reuters) - Gold prices hit two-month lows below $430 an ounce before paring losses on Monday morning, as a firmer dollar, lower oil price and the holiday absence of some investors in London and Tokyo pressured the metal.

On the COMEX division of the New York Mercantile Exchange, February delivery gold was down $7, or 1.6 percent, at $431.40 an ounce at 10 a.m. EST (1500 GMT), dealing between $438.90 and $429, which was the lowest since Nov. 5.

Bullion also tumbled to reach $429.95/430.70 an ounce, off sharply from Friday's London closing quote at $438.70/9.40.

"Lower euro and oil are hitting gold and there are technicals hitting this thing, too," Tom Boustead, a metals analyst at Refco, said. "Also we knocked under a recent low at $433.40 and that got some additional motion going in it."

Gold tends to move in opposition to the dollar as many investors use the metal as an alternative to the greenback.

"Crude lower is usually good for the stock market, which is an alternative to gold, and equity markets are up today," Boustead said.

Physical trading was quiet, with jewelry makers and investors showing negligible interest in the metal despite falling prices.

Many gold players were sidelined at the start of 2005 trading as commodity markets in London were shut on Monday and Tokyo gold futures were closed until Tuesday.

Estimated COMEX turnover was a mild 16,000 contracts.

The dollar began 2005 on a firm note on expectations of upbeat U.S. economic data this week. It traded at $1.3487 versus the euro, up from last week's record low at $1.3667.

Gold steadied after U.S. data showing growth at factories rose in December, with an increase in new orders and despite a decline in the employment.

In oil, February crude was down $1.25, or 2.8 percent, at $42.20 on the New York Mercantile Exchange as mostly mild Northern Hemisphere weather tempered heating oil demand.

Gold rose nearly 6 percent in 2004, and dealers expected prices to extend gains this year as troubles in Iraq, inflation fears due to high oil prices, and the U.S. dollar's poor outlook raise gold's safe-haven appeal.

Many currency traders believe the dollar's downtrend is intact and the euro's bull run should have further to go in 2005, which in theory should bolster gold prices.

COMEX gold hit a 16-year high at $458.70 in December. Analysts have targeted the $465-$470 level as an early 2005 possible high, while some look for a peak atop $500 before the year is out.

Initial chart support in COMEX gold lurks at $427.50 an ounce, Boustead said, followed by the 100-day moving average at $426. Brokers pegged first resistance at $435.

March silver fell 11.7 cents to $6.72 an ounce, trading from $6.84 to $6.64, its lowest since Dec. 10. Spot hit $6.67/70 versus $6.81/6.83 previously.

Active April platinum slid $5.70 to $854. Spot platinum traded at $853/857.

March palladium lost $5.25 to $180 an ounce. Spot touched $179.50/185.50.

03 Jan 2005 19:58

03.01.2005 19:47:29 Silver price ends below $6.50/oz after gold falls

NEW YORK, Jan 3 (Reuters) - Silver prices settled at three-month lows on Monday, as lower gold values and a firmer U.S. dollar triggered speculative liquidation, dealers said.

Silver for March delivery on the New York Mercantile Exchange's COMEX division fell 33 cents to finish at $6.507 an ounce, after trading between $6.84 and $6.49, which was its lowest mark since Sept. 27.

Spot silver tumbled to $6.47/50 an ounce, compared to its last closing quote at $6.81/6.83.

NEW YORK, Jan 3 (Reuters) - Gold prices closed at two-month lows on Monday and silver hit its weakest level in three months, as precious metals lost some appeal due to a bounce in the dollar and lower crude oil prices, traders said.

Few buyers at the start of the year, after gold turned in a strong performance in 2004, disappointed traders who were hoping for more safe-haven buying amid violence in Iraq, fears of inflation and the dollar's poor outlook.

"I think a lot of people were expecting new money to come into the market, and when it didn't, gold and silver started breaking down through technical levels and we saw continued liquidation," a trader at a large international bank said.

On the COMEX division of the New York Mercantile Exchange, February delivery gold fell $8.70, or 2 percent, to $429.70 an ounce, after dealing between $438.90 and $427.80, which was its lowest level since Nov. 5.

Gold futures rose nearly 6 percent in 2004, following gains of about 20 percent a year earlier.

Bullion touched $428.60/9.30 an ounce in late trade, compared with Friday's London closing quote at $438.70/9.40.

The dollar rebounded after it slid to record lows against the euro last week, but analysts were uncertain if the rally would hold as the focus turned to the December U.S. jobs report due Friday.

The euro was down at $1.3487 in midafternoon, against record high last week at $1.3667.

Crude oil was down about 3 percent as mostly mild Northern Hemisphere weather tempered heating oil demand.

"Lower euro and oil are hitting gold and there are technicals hitting this thing, too," said Tom Boustead, a metals analyst at Refco. "Also we knocked under a recent low at $433.40, and that got some additional motion going in it."

Gold usually goes in the opposite direction from the dollar as investors use it as an alternative to the currency. Lower oil prices also can reduce interest in gold as a hedge against inflation.

Physical trading was quiet, dealers said, with jewelry makers and investors showing negligible interest in the yellow metal currently, despite falling prices.

Many gold players were sidelined at the start of 2005, however, as commodity markets in London were shut on Monday and Tokyo gold futures were closed until Tuesday.

Currency traders tend to think the dollar's downtrend is intact and the euro's bull run should have further to go this year, which in theory should bolster gold prices.

COMEX gold hit a 16-year high at $458.70 in December. Analysts have targeted the $465-$470 level as an early 2005 high, with $500 seen possible after that.

Support in futures lurks at $427.50, followed by the 100-day moving average at $426. Brokers pegged initial resistance at $435.

Holdings of gold in the U.S. exchange-traded fund streetTRACKS , which is backed by bullion, stood at 94.86 tonnes on Dec. 31, up from 91.75 tonnes early last week.

March silver settled 33 cents lower at $6.507 an ounce, after trading from $6.84 to $6.49, its lowest since Sept. 27. Spot silver tumbled to $6.47/50, compared with its last closing quote at $6.81/6.83.

NYMEX April platinum fell $6.20 to close at $853.50 an ounce. Spot platinum last traded at $853/857.

March palladium lost $6.25 to $179 an ounce. Spot held at $179.50/185.50.

04 Jan 2005 09:53

04.01.2005 08:09:41 Gold opens near 2-month low in Europe, silver weak

* Spot gold starts at $428.75/429.50, against $428.60/429.30 quoted late in New York on Monday, but some $10 down from last European levels on Friday. Market lower after dollar rebounds versus euro on Monday, and near two-month low. Dollar/euro stands around $1.3460, versus levels of $1.3620 on Friday. * Silver at $6.41/6.44, levels last seen three months ago, compared with $6.47/50 in New York, and down some 40 cents from last Friday. * Platinum at $848.00/853.00 from $853.00/857.00 in New York. * Palladium at $179.00/184.00 from $179.50/185.50.

04 Jan 2005 10:19

04.01.2005 09:08:43 TECHNICALS-Gold under pressure after dollar revival

---------------------------------------------------------------

SPOT NY CLOSE * SUPPORT * RESIST * RSI14 * MA10 * MA30
GOLD 428.60/9.30 * 425.00 * 445.00 * 37 * 439.21 * 443.36
SILVER 6.47/6.50 * 6.25 * 7.00 * 32 * 6.77 * 7.11
PLAT 853.00/7.00 * 850.00 * 875.00 * 50 * 851.55 * 850.47
----------------- VIEWS FROM THE MARKET - Jan 4 --------------

LONDON, Jan 4 (Reuters) - Gold was seen struggling to regain poise on Tuesday in Europe, with prices having fallen sharply since last Friday on the dollar's rebound, traders said.

"It came down because of the dollar, but we should be seeing some support here," a trader said.

The dollar , which was around $1.3620 on Friday when London bullion traders closed their books, bounced on Monday and now stands around $1.3453.

Gold accordingly fell to two-month lows, while silver was at levels last seen some three months ago, having been hit by speculative sales in New York on Monday.

Losses in the other white metals platinum and palladium were less extreme, however.

GOLD -

The market was some $10 down from the levels prevailing last Friday, but little changed versus the Monday close in New York.

The decline took place in thinner than normal conditions, and analysts are now looking for the market to stabilise.

"With all market participants returning today, the day ahead should provide better indication of whether gold has further short-term downward correction ahead with next support around $426.00 or can resume its positive stance," Standard Bank London said in its daily report.

On the upside, there is likely to be resistance between $430 and $435.

At 0803 GMT spot gold was quoted at $427.60/428.35, down $1.00 from Monday's New York quote.

SILVER -

The market took a hit on Monday from the stronger dollar and investment sales, pushing prices under support at $6.75 and then $6.50.

Although there has been some physical interest on the decline, the market will remain vulnerable on the downside if gold stays under pressure.

At 0803 GMT spot silver was quoted at $6.41/6.44, down six cents from New York.

PLATINUM -

The market is straddling important moving average support around the $850.00 level, having lost some ground over the weekend, but conditions were thin.

A significant break below here could see losses accelerate, however.

At 0803 GMT spot platinum was quoted at $848.00/853.00, down $5.00.

04 Jan 2005 10:58

04.01.2005 08:51:48 Asia Gold-Chinese buying seen, but activity still low

By Lewa Pardomuan

SINGAPORE, Jan 4 (Reuters) - Gold purchases have picked up in China ahead of the Lunar New Year but physical trading is lethargic in other parts of Asia with many investors still in a holiday mood, dealers said on Tuesday. Demand for gold, used as investment and adornment, normally rises ahead of the celebration, which falls in early February this year. Lunar New Year is also celebrated in Indonesia, Malaysia and Singapore.

In Singapore, a centre for bullion trading in southeast Asia , gold bars were offered at a premium of 10 U.S. cents an ounce to London spot prices, unchanged from last week. "There's not much activity, simply because not everybody is at their desk. But I think jewellers should start buying gold now to make sure they have the finished products ready at the shops before the celebration," said one dealer in Malaysia.

"I guess premiums will rise to 20 cents with spot prices coming down, and also because of the festive demand. At 10 cents, you are operating at a loss," he added.

Gold steadied in Asia on Tuesday after falling to a two-month low at $426.65 an ounce in New York because of a firmer dollar and a fall in oil prices.

Spot gold was quoted at $427.75/428.50 an ounce by 0721 GMT, versus $428.60/429.30 last quoted in New

York on Monday and a 16-½ year high of $456.75 an ounce hit in
early December.

"There's some buying in China at the moment for the Chinese New Year," said Ellison Chu, a senior manager at Standard Bank London in Hong Kong.

Gold demand in China, one of the world's largest consumers, was expected to have risen to around 314 tonnes in 2004, up 15 percent from 2003 as the country liberalises its bullion market.

But Chu said demand from investors and jewellers was slow in Hong Kong, which suggested that many players had not returned from holiday.

"The sudden (price) drop doesn't bring in any good business. It's too bad. I think many people are not back yet (from holiday)," he added.

Premiums for gold bars were unchanged at around 20 U.S. cents an ounce in Hong Kong, a key bullion trading city in East Asia.

Some dealers said gold's decline would be temporary, with investors likely to to drive the dollar down again due to the massive U.S. current account and budget deficits.

Investors believe the dollar must weaken more to help correct the imbalances.

Dollar weakness has been the dominant factor behind gold's three-year run higher, and some dealers expected the yellow metal to regain $450 later in January.

Dealers said factors supporting gold included lower mining output, violence in Iraq, the prospect of higher demand in main consumers China and India, as well as the dollar's poor outlook.

04 Jan 2005 14:30

04.01.2005 12:53:21 Gold under pressure in Europe on dollar fightback

LONDON, Jan 4 (Reuters) - Gold prices fell to around their lowest in two months on a dollar revival in Europe on Tuesday, but dealers saw the decline as a possible buying opportunity for investors.

Spot gold was at $426.60/427.30 an ounce by 1130 GMT, compared with $428.60/429.30 late in New York on Monday.

The market has fallen sharply from robust end-2004 levels around $438 as the dollar fought back against the euro and yen, dulling gold's allure as an alternative asset.

Bullion touched $425.70 at one point on Tuesday -- a level last seen on November 5.

"The market is continuing to see fund liquidation, but prices are a little bit oversold now relative to where the euro/dollar is trading," David Holmes, vice-president at RBC Capital Markets, said.

"I think this is a buying opportunity for people who feel that 2005 is going to be a continuation of the 2004 bullish theme," he added.

The dollar crept up from last week's sharp drop to a record low against the euro around $1.3670, which prompted profit-taking in the single currency.

The euro was last quoted around $1.3372, but persisting worries over the ability of the United States to fund its ballooning deficits were expected to put the dollar on the defensive again in the longer term.

Bullion gained almost six percent during 2004 as it extended a bull-run that that has now lasted for three years, and UBS investment Bank analyst John Reade said in a daily report that gold should resume its uptrend.

"There should not be too much downside unless we are in for a period of protracted U.S. dollar strength, which we do not expect," Reade said.

"Thin liquidity is exacerbating the moves in the currency and metals markets and as such it is too soon to get concerned about the decline in gold."

Silver was languishing at its lowest in three months, with the market sliding sharply after the losses in gold.

Spot silver was last at $6.37/6.40 from $6.47/6.50 last quoted in New York on Monday.

Alexander Zumpfe of Dresdner Kleinwort Wasserstein said selling might push prices down to $6.30, although the metal was now looking oversold and ripe for a bounce.

Platinum stood at $841.00/846.00 from $853.00/857.00, while palladium was flat at $179.50/185.50.

04 Jan 2005 14:57

04.01.2005 13:27:15 Silver fixes sharply down, Europe gold pressured

* Silver fixed sharply lower at 639.00 cents per ounce from the previous fix last week ahead of year-end holidays in London at 681.50 cents.

* Spot silver weak at $6.35/6.38, last seen three months ago, compared with $6.47/6.50 in New York on Monday. Market following gold prices down, but dealers say metal looking ripe for a bounce on oversold technical signals.

* Silver forward rates on Reuters page indicated at 2.172, 2.155, 2.122 and 1.953 for one, three, six and 12 months respectively.

* Spot gold drops to $426.30/427.00 per troy ounce by 1221 GMT -- near its lowest in two months -- from $428.60/429.30 quoted late in New York on Monday.

* Market slips as dollar rebounds versus euro. Dollar/euro stands around $1.3365, as the U.S. currency comes back from record lows around $1.3670.

* Platinum at $841.00/846.00 from $853.00/857.00 in New York, while palladium lies flat at $179.50/185.50.

04 Jan 2005 16:46

04.01.2005 16:33:03 NY gold, silver hit fresh lows early on fund sales

NEW YORK, Jan 4 (Reuters) - U.S. gold futures fell to a two-month low on Tuesday morning, while silver touched three-month lows, on a second day of fund liquidation inspired by a recovery in the dollar, dealers said.

Precious metals may have found some technical support at cheaper prices, however, after gold lost 2 percent and silver 4.8 percent Monday on, as players in London and Tokyo returned to the market after New Year's holidays.

February delivery gold stumbled down $2.90 to $426.80 an ounce by 10:19 a.m. EST (1519 GMT) on the New York Mercantile Exchange's COMEX division, trading from $431.30 to $426.60, its lowest intraday level since Nov. 3.

"Clearly it is a dollar rally" that was hitting gold after it had been at high levels at end-2004, said Graham Leighton, vice president precious and base metals at Societe Generale.

"We broke the $439 and $432 levels and then, basically, it's been continued liquidation from the funds as we hit technical levels all the way down."

COMEX gold shot to a 16-year peak in early December at $458.70, fueled by investment and safe haven buying due to violence in Iraq, a sharply weaker dollar and high oil prices.

Gold often goes in the opposite direction from the dollar as investors use it as a currency alternative. High oil prices can heighten gold's allure as a hedge against inflation.

But aside from the funds lightening gold holdings, Leighton said the devastating Asian tsunamis looked to be bearish for the market, due to a double effect of lower physical demand in the region after the crisis, at least in the short-term, and selling of assets to finance recovery efforts, which would increase gold supply.

Standard Bank said in a report gold was still tracking the euro and with more participants back in the market Tuesday it remained to be seen if more short-term technical selling was in store, with support pegged at $426.

The dollar climbed on apparent trader short covering after a series of record lows against the euro at the end of 2004. It fetched $1.3366 per euro, up 3 cents from last week's all-time low at $1.3667.

Analysts were unsure if the dollar's rally would hold, however, as the focus turned to the December U.S. jobs report due Friday.

On Tuesday, U.S. factory orders during November rose at the fastest rate in four months, pushing business up 1.2 percent to a seasonally adjusted $377.42 billion, versus forecasts for up 0.8 percent.

November durable goods were revised to up 1.4 percent from 1.6 percent.

In the latest closely watched CFTC Commitments of Traders data, the net fund long position in COMEX gold futures rose to 98,753 lots as of Dec. 28, from 90,253 lots on Dec. 21.

Estimated COMEX volume by 10 a.m. was 23,000 contracts.

Spot gold traded to $426.85/7.40 an ounce, below Monday's New York close at $428.60/9.30. Tuesday's afternoon London fix was at $427.75.

March silver fell 4.7 cents to $6.46 an ounce, dealing between $6.545-$6.38, its lowest level since Sept. 22.

CFTC data showed the net fund long stance in COMEX silver rose to 37,706 lots on Dec. 28 from 37,664 a week earlier.

Spot silver hit $6.41/44, compared with its last closing quote at $6.47/50. Tuesday's fix was at $6.39.

NYMEX April platinum fell $9.50 to $844 an ounce. Spot platinum slid to $842/846.

March palladium rose $1.55 to $180.55 an ounce. Spot touched $179.50/185.50.

04 Jan 2005 17:38

04.01.2005 17:33:30 Gold durch Dollar-Erholung weiter unter Druck

Zürich, 04. Jan (Reuters) - Gold hat nach herben Verlusten zu Wochenbeginn auch am Dienstag in einem allerdings recht dünnen Handel kräftig verloren. Insbesondere der zum Euro deutlich erholte Dollar setzte dem Goldpreis zu. Zusammen mit den Verlusten von rund acht Dollar vom Vortag sei mittlerweile schon wieder ein attraktives Einstiegsniveau erreicht, sagten Händler.

Bis zum europäischen Handelsschluss sackte Gold auf 424,75/425,50 (Vortagabend 430,70/431,40) Dollar je Feinunze ab. Das Londoner Nachmittagsfixing erfolgte bei 427,75 Dollar nach 426,80 Dollar am Vormittag. 2004 war das gelbe Edelmetall mit einem Plus von sechs Prozent das dritte Jahr in Folge gestiegen. Anfang Dezember hatte Gold mit 456,75 Dollar den höchsten Stand seit 16-1/2 Jahren erreicht.

Gold sei nach den jüngsten Fonds-Liquidationen ein wenig überverkauft, sagte ein Marktteilnehmer. Das könnte Investoren, die auf eine Fortsetzung der Gold-Hausse setzen, anlocken. So lange die Unsicherheiten im Zusammenhang mit dem Doppeldefizit der USA, die den Dollar tendenziell belasten, weiter bestehen, dürfte der Aufwärtstrend des gelben Metalls ungebrochen sein, hiess es.

Ein schwacher Dollar macht das in der US-Devise gehandelte Gold für Investoren aus anderen Währungsräumen günstiger.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.817/16.067 (Montagnachmittag 15.714/15.964) sfr an.

pma/par

04 Jan 2005 20:51

04.01.2005 20:27:20 NY gold ends below $430, silver hits 3-mo. low

NEW YORK, Jan 4 (Reuters) - U.S. gold futures fell but settled above a two-month low on Tuesday while silver hit a three-month nadir, on a second day of fund liquidation in precious metals due to a U.S. dollar rally, dealers said.

Prices found buying support at lower levels though, with London and Tokyo players back in the metals markets after New Year's holidays.

February delivery gold ended down 50 cents at $429.20 an ounce on the New York Mercantile Exchange's COMEX division, after moving from $431.30 to $424.80 -- its lowest close since Nov. 3.

Estimated volume was a busy 71,000 contracts but down from Monday's tally of 93,540 lots, when gold fell 2 percent.

"Clearly it is a dollar rally" that hit gold after it had been at high levels at year-end, said Graham Leighton, vice president precious and base metals at Societe Generale.

"We broke the $439 and $432 levels and then, basically, it's been continued liquidation from the funds as we hit technical levels all the way down."

Gold touched a 16-year peak in early December at $458.70 in futures, fueled by investment and safe haven buying amid ongoing violence in Iraq, the weak dollar and high oil prices.

The market often fades moves in the dollar as investors use it as an alternative to the U.S. currency.

Aside from funds lightening up in gold, Leighton said the devastating Asian tsunamis seemed to be bearish for the market, amid less physical demand in the short-term and new selling to finance recovery efforts, which should increase gold supply.

The dollar rose on short covering after a series of record lows against the euro at the end of 2004. It last hit $1.33 per euro, up more than 3 cents from last week's all-time low at $1.3667.

Analysts were unsure if the dollar's rally would hold, however, as the focus turned to the December U.S. jobs report due Friday.

On Tuesday, U.S. factory orders during November rose at the fastest rate in four months, pushing business up 1.2 percent to a seasonally adjusted $377.42 billion, versus forecasts for up 0.8 percent.

November durable goods were revised to up 1.4 percent from 1.6 percent.

In the latest closely watched CFTC Commitments of Traders data, the net fund long position in COMEX gold futures rose to 98,753 lots as of Dec. 28, from 90,253 lots on Dec. 21.

Spot gold was worth $427.60/8.30 an ounce, below Monday's New York close at $428.60/9.30. Tuesday's afternoon London fix was at $427.75.

March silver fell 5.5 cents to end at $6.452 an ounce, after dealing between $6.545 and $6.35, its lowest level since Sept. 22, as gold remained weak.

CFTC data showed the net fund long exposure in COMEX silver rose to 37,706 lots on Dec. 28 from 37,664 a week earlier.

Spot silver priced at $6.41/44, against its last closing quote at $6.47/50. Tuesday's fix was at $6.39.

NYMEX April platinum settled $9.70 lower at $843.80 an ounce. Spot platinum was at $842/846.

March palladium rose $1.15 to $180.15 an ounce. Spot stayed at $179.50/185.50.

05 Jan 2005 09:54

05.01.2005 08:21:08 Europe gold edgy at opening, eyes higher dollar

* Spot gold sluggish in Europe at $427.25/428.00 per troy ounce, against $427.60/428.30 quoted late in New York on Tuesday. Market above Tuesday two-month lows, but under pressure still from dollar strength.

* Spot silver at $6.44/6.47, compared with $6.41/6.45 in New York. Above three-month lows on oversold technical signals.

* Platinum at $844.00/849.00 from $842.00/846.00 in New York.

* Palladium at $178.00/183.00 against $179.50/185.50.
05 Jan 2005 09:54

05.01.2005 08:31:49 Tokyo gold meets solid bids, off 3 1/2-mth lows

TOKYO, Jan 5 (Reuters) - Tokyo gold futures mostly fell modestly on Wednesday but closed above three-and-a-half-month lows as bargain-hunters were keen to buy the yellow metal in view of its bullish fundamentals.

Yen-based gold futures on the Tokyo Commodity Exchange (TOCOM) came under strong selling pressure on technical sales prompted by falls in the dollar-based spot price, which was hammered down by the strength of the dollar, traders said.

But TOCOM gold found support as the metal was fundamentally bullish, with investors keen to hold it for safe-haven purposes amid violence in Iraq and with the market still unconvinced about the latest recovery of the dollar.

"Gold fell on pure technical correction. This is what the market needed as we haven't seen major corrections since September," said a senior trader at a Japanese trading company.

"Further downward correction is possible as speculators are trying to push down the spot price, but this would create more chance for bargain-hunters to buy gold."

The benchmark December gold contract on the Tokyo Commodity Exchange (TOCOM) fell as low as 1,428 yen per gram, the lowest since Sept. 17. The contract has fallen more than 5 percent from a 12-year high of 1,505 yen hit a month ago.

But it managed to draw steady bargain-hunting around the low. The key contract closed flat at 1,442 yen.

Other contacts settled down one to six yen.

At 0630 GMT, spot gold was quoted at $427.40/427.90 an ounce, against $427.60/8.30 in New York on Tuesday.

Traders said there was key support at a 100-day moving average of about $425. The level was seen important as it is a 50 percent retracement point between a low of $395 hit in early September and a 16-year high above $455 hit last month.

Speculators were keen to drive it down as major stop-loss sell orders were rumoured placed around the support, they said.

"Downward pressure was strong as speculators wanted to confirm if there were stops actually lined up around $425," the trader said.

Traders said the next key technical level would be a 200-day moving average of around $410.

Many operators were not expecting gold to fall sharply from current levels, however.

"Gold has come down quite a bit in recent sessions but the basic trend remains bullish," said Tadashi Hashimoto, general manager at Nissho Iwai Futures.

"There are plenty of people who want to buy gold on dips, so its downside should be limited."

Key TOCOM platinum rebounded nearly two percent at one point following a sharp loss the previous day as the yen's fall encouraged buyers to cover their positions, traders said.

The benchmark December contract closed up 47 yen per gram at 2,753 yen. It had moved in a range of 2,720 to 2,758 yen.

Platinum had fallen on Tuesday to a near one-month low of 2,703 yen.

Other contracts closed up 42 to 57 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:

For open interest details please click

Closing price Turnover (lots)
GOLD 1,442 (flat) 208,769
SILVER 216.8 (down 5.0) 7,243
PLATINUM 2,753 (up 47) 37,876
PALLADIUM 605 (up 13) 749

05 Jan 2005 14:38

05.01.2005 13:15:53 Europe gold eases quietly as dollar holds gains

LONDON, Jan 5 (Reuters) - Gold prices fell slightly on Wednesday in Europe, with the market driven chiefly by the dollar's extended rebound against major rivals, dealers said.

Spot gold eased to $426.00/426.70 per troy ounce by 1207 GMT, from $427.60/428.30 late in New York on Tuesday.

The market was attempting to consolidate after sharp drops seen earlier this week as the dollar fought back strongly from record lows against the euro, dulling gold's appeal as an alternative asset.

Dealers did not rule out further falls if the dollar strengthened further.

"If the dollar continues to firm, I could imagine further losses with $420 and $417 being potential targets," a European dealer said.

"However, I believe that the most recent selling was a bit exaggerated and I don't expect it to drop much below this," he added.

The dollar hit three-week highs against the euro and yen, building on gains made after minutes of the U.S. Federal Reserve's latest meeting suggested the central bank might step up the pace of interest-rate rises.

The euro was last indicated around $1.3242.

Dealers and analysts said, however, that gold, which rose almost six percent during 2004, was probably poised to resume its overall uptrend of the last three years as the dollar was set to fall further.

"Our FX strategists do not believe the dollar weakness has yet run its course, but see the scope for a short-term dollar rally amid hawkish FOMC minutes and on expectations of strong U.S. payrolls data on Friday, in which case gold is likely to re-test support," Barclays Capital said in a daily report.

Silver edged up slightly as the market consolidated sharp gold-led falls from Monday, with technical charts showing overbought conditions.

Spot silver was last at $6.44/6.47 from $6.41/6.44 previously.

Platinum stood at $841.00/845.00 from $842.00/846.00, while palladium was marginally lower at $179.00/184.00 from $179.50/185.50 in New York on Tuesday.

05 Jan 2005 17:24

05.01.2005 17:14:54 Goldkurs konsolidiert nach Vortagesverlusten

Zürich, 05. Jan (Reuters) - Der Goldkurs hat am Mittwoch im europäischen Markt trotz einer anhaltenden Dollar-Erholung nach den Vortagesabgaben konsolidiert. Der Handel hielt sich in engen Spannen.

Händler wollten einen weiteren Abwärtstrend des gelben Metalls bei einem wieder stärkeren Dollar jedoch nicht ausschliessen. "Wenn der Dollar weiterhin fester tendiert, könnte ich mir weitere Verluste bis möglicherweise auf 420 und 417 Dollar vorstellen", so ein Marktteilnehmer. Er gehe jedoch davon aus, dass die jüngsten Gold-Verkäufe etwas übertrieben ausgefallen seien, so dass Gold bei einem neuerlichen Abwärtstrend nicht weit unter die jüngsten Tiefs sinken dürfte.

Gold war am Dienstag um rund sechs Dollar auf 424,75 Dollar abgesackt, nachdem der Kurs schon am Montag um rund acht Dollar nachgegeben hatte.

Zum Handelsschluss stand die Feinunze Gold bei 426,30/427,00 Dollar nach 424,75/425,50 Dollar am Vortag. In London wurde das Edelmetall am Nachmittag bei 426,00 Dollar gefixt und am Vormittag bei 425,50 Dollar. Am Dienstagnachmittag lautete das Fixing auf 427,75 Dollar.

Ein steigender Dollar verteuert das in der US-Devise gehandelte Gold für Investoren aus anderen Währungsräumen, ausserdem rückt der Absicherungsbedarf gegen eine Dollarabwertung durch die Anlage aktuell nicht benötigter Devisen in Gold in den Hintergrund.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 15.920/16.170 (Vortag 15.817/16.067) sfr an.

ish/pma

05 Jan 2005 17:25

05.01.2005 17:10:47 Commodities News Summary

TOP NEWS
> Europe gold eases as dollar holds gains [nL05278780]

LONDON - Gold prices fell on Wednesday in Europe, with the metal's appeal as an alternative investment dulled by the dollar's extended rebound against major rivals, dealers said.

Spot gold eased to $426.30/427.00 per troy ounce by 1546 GMT, from $427.60/428.30 late in New York on Tuesday.

- - - -

> LME zinc up 3.4 pct on short-covering [nL05382378]

LONDON - London Metal Exchange zinc contracts rose more than three percent on Wednesday as investors covered short positions after a major sell-off on Tuesday, traders said.

At 1525 GMT three months zinc was 3.4 percent, or $40, up at $1,210/12.

- - - -

GRAINS/OILSEEDS/LIVESTOCK
> Vietnam fights bird flu threat as boy dies [nHAN169261]

HANOI - Bird flu has killed a 9-year-old boy in Vietnam, a health official said on Wednesday, marking the first reported death in 2005 from a virus that killed more than 30 people last year and ravaged the poultry industry as it swept across Asia.

The death comes a week after the World Health Organisation warned Vietnam may face new bird flu outbreaks this month, as poultry is transported around the country ahead of the Lunar New Year celebrations in early February.

- - - -

> Pakistan eyes record cotton crop at 13.7 mln bales [nISL186198]

ISLAMABAD - Pakistan expects a record 2004/05 cotton harvest of more than 13.72 million bales (375 lbs), exceeding the target of 10.72 million bales, the government said in a statement on Wednesday.

- - - -

> UK cereals progress well in mild weather -analysts [nL05677735]

LONDON - Britain's main cereal crops are making relatively good progress in mild weather, agronomists said on Wednesday.

- - - -

> Rains fail to remove S.Africa drought fears [nL05593584]

JOHANNESBURG - Large parts of South Africa still desperately need rain, despite recent downpours, as the staple maize crop enters a crucial stage, producers said on Wednesday.

- - - -

> Kazakh 2004 grain crop down to 12.4 mn tonnes-agmi [nL05703554]

ASTANA - Kazakhstan's 2004 grain crop dropped to 12.4 million tonnes by clean weight from 14.8 million tonnes in 2003, Agriculture ministry said on Wednesday.

- - - -

METALS > Copper bounces on LME, market still wary of funds [nL05665356]

LONDON - Copper staged a recovery during Wednesday open-outcry trading on the London Metal Exchange (LME), rising just over one percent, although the metals complex remained wary of renewed investment fund sales, traders said.

Benchmark copper , initially under $2,900 a tonne, rallied on option-related buying to settle at $2,944 a tonne at the end of the rings, a $34 or 1.1 percent advance from the $2,911 Tuesday kerb close.

- - - -

> Titan Australia and China's Baiyin in copper pact [nSYD170676]

SYDNEY - Australia's Titan Resources NL. (/TIR.AX) and Baiyin Nonferrous Metals Corp. of China will form a partnership to glean more than 500,000 tonnes of copper from a mountain of low-grade ore in western China, Titan said on Wednesday.

- - - -

SOFT COMMODITIES
> Ivory Coast's southwestern cocoa routes open [nL05682817]

ABIDJAN - Main routes to Ivory Coast's southwestern port of San Pedro were open on Wednesday after militants withdrew plans to barricade the roads to keep out French troops.

- - - -

> Physical sugar-India buys, enquiry from Pakistan [nEUSUG2]

LONDON - Indian millers may have bought several cargoes of raw sugar this week as a jump in domestic prices boosted import margins, while Pakistani buyers made enquiries, traders said on Wednesday.

- - - -

© Reuters 2004

05 Jan 2005 17:45

05.01.2005 17:29:02 Europe gold ends flat, pressured by dollar rally

* Spot gold eases to end flat in Europe on Wednesday at $427.60/428.30 per troy ounce by 1615 GMT.

* Market attempts to consolidate above Tuesday's two-month low of $423.55, but under pressure still from dollar strength.

* Euro last at $1.3281, well off the recent record peak just under $1.3670.

* Spot silver rises to $6.51/6.54 from $6.41/6.45 in New York. Market hovering above three-month lows, with gains seen amid oversold conditions.

* Platinum at $845.00/850.00 from $842.00/846.00 in New York.

* Palladium at $178.00/183.00 against $179.50/185.50.
05 Jan 2005 17:46

05.01.2005 17:26:18 COMEX gold stays soft early on dollar strength

NEW YORK, Jan 5 (Reuters) - U.S. gold futures dipped but held above prior two-month lows on Wednesday morning, under slight pressure from newfound strength in the dollar this week, which limited the metal's demand from overseas traders.

Silver, platinum and palladium steadied in a technical bounce after two days of fund liquidation across the precious and base metals complex, dealers said.

February delivery gold lost 40 cents to $428.80 an ounce by 11:06 a.m. EST (1606 GMT) on the New York Mercantile Exchange's COMEX division, trading $429 to $425.90, and above Tuesday's low at $424.80 -- its cheapest level since Nov. 3.

"The strength of the dollar in the last few days has attracted some liquidation, I would say to book some profits on the carry-over from the end of the year," said Frank Aburto at F.C. Stone.

Even with gold at lower prices and analysts saying the dollar's resurgence was merely temporary, traders were reluctant to beef up their large long positions as the greenback stayed firm, dealers said.

"What you're seeing is a lot of people who put on long commodities trades getting scared out," said a broker at a futures commission merchant.

Gold often fades moves in the dollar as investors use it as an alternative to the U.S. currency.

However, some brokers were surprised to see charts were showing gold leading the euro in terms of losses, which they said ran contrary to the typical pattern of the metal mirroring the common European currency.

The dollar climbed to three-week highs against the euro and the yen Wednesday, building on gains after the minutes of the U.S. Federal Reserve's latest meeting suggested the central bank might step up the pace of interest rate rises.

The dollar was at $1.3290 per euro, up almost 4 cents from last week's all-time low at $1.3667.

On the data front, the Institute for Supply Management's non-manufacturing index rose to a better-than-expected reading of 63.1 in December, above 61.3 a month earlier and Wall Street estimates of 61.0.

F.C. Stone's Aburto pegged support in COMEX February gold at $425, $424.80, then $415, with resistance at $430 and $433-435, provided how the euro behaves.

Spot gold priced at $427.65/8.40 an ounce, up from Tuesday's late New York quote at $427.60/8.30. Wednesday's afternoon London fix was at $426.

Holdings of gold in the U.S. exchange-traded fund streetTRACKS , which is backed by bullion, stood at 109.14 tonnes on Jan. 4, off slightly from a record high 109.16 tonnes the day before.

March silver rose 10.8 cents to $6.56 an ounce, dealing from $6.41 to $6.57, and up from Tuesday session low at $6.35, not seen since Sept. 22.

Spot silver fetched $6.53/56, above its last New York close at $6.41/44. Wednesday's fix was up at $6.455.

NYMEX April platinum gained $3.20 to $847 an ounce. Spot platinum traded up at $845/850.

March palladium rose $2.85 to $183 an ounce. Spot stuck around $180/184.

06 Jan 2005 10:05

06.01.2005 08:58:10 Tokyo gold falls as firm dollar hurts sentiment

TOKYO, Jan 6 (Reuters) - Tokyo gold futures dropped on Thursday as the recent recovery of the dollar depressed the market's underlying trend and prompted investors to lighten positions further in the yellow metal.

Investors were keen to square their positions ahead of the release of U.S. payroll data on Friday as the strength of the dollar has been weighing on the dollar-based spot price and pressuring gold futures on the Tokyo Commodity Exchange (TOCOM).

Speculators sold gold on vague rumours that international monetary bodies may come up with plans to provide financial assistance for Asian tsunami-hit countries that would be funded with proceeds from gold sales, traders said.

"There are still many long positions held above 1,450 yen and holders are willing to unwind them," said Tatsuo Kageyama, analyst at Kanetsu Asset Management.

"The dollar's recent recovery has been hurting the trend in the short term, but the medium- and long-term outlooks for gold remain strong."

The December TOCOM gold contract closed 4 yen lower at 1,438 yen a gram. It had moved in a range of 1,431 to 1,438.

Other contracts settled down 1 to 5 yen.

At 0726 GMT, spot gold was quoted at $425.75/6.50 an ounce, against $427.65/8.40 last quoted in New York.

Traders said falls in gold would be limited as there was a sizeable bargain-hunting appetite for physical gold.

"Sharp falls from the present level are unlikely as demand for physical gold is expected to lend support," said Akira Doi, director at Daiichi Commodities Co. Ltd.

"I think we are now seeing a very healthy correction."

Traders said Japanese investors were also keen to diversify into gold ahead of the end of a government guarantee on bank deposits at the end of March.

In the near term, however, gold and other precious metals were seen vulnerable to a further downside correction amid concerns that the greenback may rise again should the U.S. jobs data turn out to be strong, traders said.

Economists polled by Reuters said 175,000 jobs were likely created in December.

The dollar was well off its lows against major currencies.

It was quoted at $1.3230/36 against the euro , more than 3 percent above its record low of $1.3670 hit on Dec. 30, according to data from electronic trading platform EBS.

The U.S. currency was at 104.53/56 yen , up slightly from 104.14 yen in late New York, and up nearly 2 yen since the start of the year.

TOCOM platinum was mostly down, but lacked clear direction with the market mainly driven by moves in the yen and gold.

December platinum closed down 3 yen per gram at 2,750 yen. It had moved in a range of 2,726 to 2,761 yen.

Other contracts closed flat to down 8 yen, with the exception of the spot February, which rose 12 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:

For open interest details please click

Closing price Turnover (lots)
GOLD 1,438 (down 4) 62,934
SILVER 218.7 (up 1.9) 3,590
PLATINUM 2,750 (down 3) 31,425
PALLADIUM 610 (up 5) 577

06 Jan 2005 18:03

06.01.2005 16:41:04 Miners power S.African stocks to new record high

JOHANNESBURG, Jan 6 (Reuters) - South African stocks scored an historic closing high on Thursday as investors grabbed heavyweight miners on a weaker rand but capped the rally by dumping recent winners in telecoms, banking and retail.

Johannesburg's bluechip top 40 index (/.JTOPI), one of the world's top performing stock markets last year, rose 1.16 percent to 11,544.59 points. The all-share index (/.JALSH) gained 0.97 percent to 12,800.52 points.

"There's been a big sector rotation on the weaker rand with everyone switching from telecoms, retailers and financials into resources," said one dealer. "Gold and platinum stocks are really flying." South Africa's rand slid by 4 percent to a two-month low against the recovering dollar, with weaker gold prices adding to the pressure as nervous markets wait for key U.S. jobs data for more direction.

Bourse volumes were around 2.7 billion rand ($457 million) shortly before close of play -- still below average and making for greater volatility, but rebounding from the paltry levels seen over the Christmas break, dealers said.

Miners dominated the day.

Warring gold producers Harmony (/HARJ.J) and Gold Fields (/GFIJ.J) jumped 8.9 and 8.53 percent, after predator Harmony told Reuters the two firms would resume talks aimed at settling an acrimonious and expensive takeover battle later this month.

Platinum producers Anglo American Platinum (/AMSJ.J) and Impala Platinum (Implats) (/IMPJ.J) gained 5.93 and 7.95 percent respectively. Heavyweight diversified mining firm BHP Billiton (/BILJ.J) gained 4.89 percent while its rival Anglo American (/AGLJ.J), South Africa's biggest company, added 3.81 percent.

On the downside, telecoms and some financials fell as investors switched capital into resource stocks.

"People were caught off guard on the weaker rand and found themselves overweight in telecoms and financials," said one telecoms analyst. "Plus telecoms have fared well recently and Telkom is starting to look fairly well priced now."

Africa's biggest telecoms company Telkom (/TKGJ.J) fell 3.88 percent while cell phone operator MTN (/MTNJ.J) slid 4.95 percent.

The banking index (/.JBNKS) shrank by 2.74 percent. Firstrand (/FSRJ.J) fell 4.35 percent while banking rivals Absa (/ASAJ.J) and the country's biggest bank by assets, Standard Bank (/SBKJ.J), fell 2.46 percent and 2.16 percent.

Retailers also took a hit as Woolworths (/WHLJ.J) posted a smaller-than-expected rise in first-half turnover amid slightly disappointing sales of clothes and homeware over Christmas. The stock fell 3.14 percent.

Home furnishing retailer Edgars Consolidated Stores (Edcon) (/ECOJ.J) -- one of 2004's top performers -- was the biggest loser, shedding 6.17 percent. Supermarket chain Pick 'n Pay (/PIKJ.J) slipped 1.77 percent.

"There have been whispers that Christmas sales in the sector as a whole weren't as good as expected and since people have made so much money on these stocks they are seizing on excuses to get out now," said one dealer.

($1=5.913 Rand)