Rohstoffnews

08 Feb 2005 08:54

08.02.2005 08:35:31 TOCOM gold rallies modestly on softer yen

TOKYO, Feb 8 (Reuters) - Tokyo gold futures staged a modest bounce on Tuesday due to buybacks induced by a softer yen, but few players bought aggressively given the precious metal's decline to a near four-month low in New York.

The benchmark December gold contract on the Tokyo Commodity Exchange finished up 7 yen at a session high of 1,400 yen per gram, after hitting a low of 1,395 yen.

Other months rose by 4 to 8 yen.

"Players were buying but they were cautious as the mood of the New York market's pretty weak," a Tokyo-based analyst said.

He noted that the bullion market had eased in Asia and was approaching a four-month low.

Most dealers expect support at around $410 an ounce to hold.

"It's still possible that spot gold will breach $410, and that makes you hesitate about buying gold actively," he said.

Spot gold was fetching $412.5/3.25 an ounce at TOCOM's closing bell, compared with $413.80/4.60 last quoted in New York.

The metal fell to $412 in Asia, its lowest since mid-October.

U.S. gold futures closed at a near four-month low on Monday, depressed by a weaker euro and uncertainty about what the International Monetary Fund may do regarding possible sales or a revaluation of its gold holdings.

April-delivery gold fell 50 cents to $415.40 an ounce.

It dipped to touch $414.00, the lowest since Oct. 13.

The IMF will review and report back in April on proposals to revalue or sell its gold reserves to help finance debt relief for poor countries.

Analysts said outright sales by the world's third-biggest holder of gold bullion were unlikely due to expected opposition from the United States.

However, the psychological impact of the issue was bearish for the price of gold.

Total gold turnover on TOCOM was estimated at a light 36,997 lots, less than half of Monday's 79,122 lots.

In the currency market, the dollar strengthened to hit a two-month high against the yen.

At 0700 GMT the dollar fetched 105.30 yen , a level not seen since Dec. 15, and compared with 104.84 in late U.S. trade.

Optimistic comments from the Federal Reserve chief on the huge U.S. deficits also provided support.

The benchmark December platinum futures contract closed down 24 yen at 2,837 yen, after moving in a range of 2,821 to 2,865 yen.

Spot platinum was at $858/863, down from New York levels of $866.50/871.50 an ounce.

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 1,400 (up 7) 36,997
SILVER 220.1 (down 1.6) 2,955
PLATINUM 2,837 (down 24) 40,445
PALLADIUM 612 (up 3) 747

09 Feb 2005 14:17

09.02.2005 12:53:19 Europe gold steadies as dollar dips, platinum weak

LONDON, Feb 9 (Reuters) - Gold steadied itself in Europe on Wednesday after the dollar stalled and helped bullion rally from near-four-month lows in the previous session, while platinum fell to a one-month low, dealers said.

Spot gold stood at $$413.10/413.90 per troy ounce by 1122 GMT, compared with $412.60/413.40 late in New York on Tuesday. The market dropped to $410.50 on Tuesday -- its lowest since mid-October -- on earlier dollar strength.

"It's been quiet today, with a lot of the Asian physical market away, but the euro popped higher and that has helped gold," one dealer said.

The dollar, which had hit three-month highs against the euro this week, lost momentum as investors questioned recent market optimism that the twin U.S. deficits would be brought under control. The euro was at $1.2786.

Worries about how the U.S. will plug its gapping deficits have dogged the dollar for the past three years. Dollar weakness has been a significant driver behind the bull run in gold, which saw prices hit a 16-1/2-year peak of $456.75 in December.

Debate over what the IMF might do with its huge bullion reserves to help alleviate Third World debt also rippled through the market as South African Mineral & Energy Affairs Minister Phumzile Mlambo-Ngcuka came out against disposals.

Mlambo-Ncuka told Reuters at an African mining conference in Cape Town that other minerals ministers at the event were concerned by media reports on the proposals and they would ask the International Monetary Fund for clarification. [nL09288963]

The IMF is the world's third biggest holder of gold with reserves in excess of 100 million ounces, but European analysts have broadly said that sales were unlikely given U.S. opposition.

Kamal Naqvi of Barclays Capital said the market would be concentrating more on currency moves.

"The market remains vulnerable to a further bout of dollar strength which, both technically and on expectations of the narrowing of the U.S. current account deficit in figures to be released on Thursday, appears increasingly likely."

Platinum faced increased pressure, falling to a one-month low of $842.00/847.00 from $853.00/858.00 in New York previously.

Selling led by recent dollar strength against the yen and the rand had encountered a lack of Asian buying due to Lunar New Year holidays.

Dealers placed immediate support at $840.

Palladium stood at $177.00/181.00 from $176.00/181.00, while silver steadied slightly to $6.54/6.56 from $6.53/6.56 on Tuesday.

09 Feb 2005 17:32

09.02.2005 17:30:07 Commodities News Summary

TOP NEWS
> UPDATE 1-Europe gold near 4-mth low, platinum weak [nL09158526]

LONDON - Gold prices moved to a fresh near-four month low on Wednesday in Europe in thin, currency-led trade with further falls likely on weak sentiment, dealers said.

The absence of key Asian buyers pushed platinum to its lowest since mid January, they added.

- - - -

> NY gold pares losses from lows early, tracks euro [nN09384010]

NEW YORK - U.S. gold futures fell to 4-1/2-month lows again before trimming losses on Wednesday morning, as gyrations in the dollar against the euro triggered further liquidation in the yellow metal.

- - - -

> LME copper trades alone in quiet afternoon trading [nL09699453] * London copper price moves lower in its current range in Wednesday's late afternoon rings -- the only metal to trade. * Trading volumes remain low amid the week-long Lunar New year holidays, while the dollar holds recent gains against the euro, anchoring like-traded commodities.

- - - -

> Platinum sets new lows as Asia takes a break [nL0953254]

LONDON - Platinum dropped to its lowest in a month on Wednesday and looks vulnerable to heavier losses as the precious metal's key buyers in Asia take a break for their Lunar New Year holiday, dealers and analysts said.

- - - -

METALS
> Cadmium prices rise strongly on Chinese demand [nL09559565]

LONDON - Cadmium prices have risen by almost 20 percent in the past few weeks as Asian demand increased after power cuts forced several Chinese smelters to cut production, traders said on Wednesday.

- - - -

> Congo plans to clamp down on "blood" mineral [nL09634196]

CAPE TOWN - Congo, which has logged success in stemming the flow of "blood" diamonds fuelling conflict, said on Wednesday it plans to extend the campaign to high-tech mineral coltan, mined by rebels in the east of the country.

- - - -

> Gold de-hedging hits 14.3 mln oz in '04-GFMS/Inves [nL09557663]

LONDON - Gold miners de-hedging activity in 2004 was provisionally estimated at 14.3 million ounces, the highest level seen since the cycle of cutting back on forward sales began in 2000, a GFMS/Investec report showed on Wednesday.

- - - -

> Molybdenum prices down 20 percent as supply weighs [nL09376647]

LONDON - Prices for steel-additive metal molybdenum have fallen by almost 20 percent in Europe in the past couple of weeks due to firm supply and easing demand, traders said on Wednesday.

- - - -

> INTERVIEW-German firm to build 60,000 T aluminium [nL09579570]

HAMBURG - Germany's VAW-IMCO is starting construction of a plant to produce 60,000 tonnes of aluminium alloy annually.

Output at the site in Esslingen near Stuttgart should start in December 2005, the firm's chief executive told Reuters on Wednesday.

- - - -

> Alcoa (/AA.N) protests at Orkla bid for Elkem [n1871]

OSLO - U.S. aluminium giant Alcoa (/AA.N) has protested to the Oslo bourse for approving a bid by Norwegian food-to-media group Orkla (/ORK.OL) for Norwegian metals group Elkem, saying a supplementary offer was too low.

- - - -

> UPDATE 1-S.Africa mines minister opposes IMF gold [nL09288963]

CAPE TOWN - South Africa's Mineral & Energy Affairs Minister Phumzile Mlambo-Ngcuka said on Wednesday she was against the idea of selling IMF gold, one of several proposals to use its gold reserves for debt relief.

- - - -

GRAINS/OILSEEDS/LIVESTOCK
> EU wheat market drifts as export hopes fade [nL09594794]

HAMBURG - European Union wheat markets generally traded sideways on Wednesday with hope fading that the European Union would grant a large subsidy award in its new wheat export tender on Thursday.

- - - -

> UPDATE 2-France urges EU to step up wheat export d [nL09679874]

PARIS - The European Union must raise wheat export subsidies now to spur shipments and prevent a massive build-up in stocks, French grains office ONIC said on Wednesday.

- - - -

> Farm exporters group attacks EU wheat sales aid [nL09626950]

GENEVA - A group of farm goods exporting countries sharply criticised the European Union on Wednesday for resorting again to wheat export subsidies, saying it sent a bad signal to free trade talks in Geneva.

- - - -

> CBOT corn mixed after USDA February crop data [nN09370288]

CHICAGO - Corn futures at the Chicago Board of Trade were narrowly mixed in thin dealings following the release early Wednesday of USDA's February supply/demand reports, traders said.

- - - -

> UPDATE 1-First US 2 bln bu corn surplus in 12 year [nN09591365]

WASHINGTON - The U.S. corn surplus will hit 2 billion bushels for the first time in 12 years, the government forecast on Wednesday, due to smaller exports in the face of a world record harvest of feed (coarse) grains.

- - - -

> UPDATE 1-Ukraine may ship extra 3.0 mln T grain by [nL09583802]

KIEV - Ukraine, which harvested a record grain crop in 2004, is likely to export about three million tonnes of grain in the remaining months of the 2004/05 season, a senior agriculture official said on Wednesday.

- - - -

> UPDATE 1-Syria sells 10,000 T durum wheat in tende [nL09465255]

HAMBURG - Syria's state grains agency has sold 10,000 tonnes of durum wheat in a sale and export tender which closed on Tuesday, traders said on Wednesday.

- - - -

SOFTS > Rain to return to Brazil's SE coffee belt at weeke [nN09708304]

RIO DE JANEIRO, Brazil - Rain will return to Brazil's major southeastern coffee region this weekend and help develop the new coffee crop, Somar predicted Wednesday.

- - - -

> UPDATE 1-Germany's Hamester selling Hamburg cocoa [nL09332050]

HAMBURG - Hamester, a leading German cocoa powder and butter producer, is in talks about selling its main factory in Hamburg in a move to withdraw completely from cocoa processing, the company's chief executive said on Wednesday.

- - - -

STEEL > Steel stocks fall on remarks by US industry leader [nN09367495]

NEW YORK - Steel manufacturers' stock prices were down on Wednesday after the head of U.S. Steel Corp. (/X.N) said he could not forecast whether 2005 will be as profitable as 2004 was.

- - - -

09 Feb 2005 21:00

09.02.2005 20:55:02 NY gold ends firmer; platinum near 1-month low

NEW YORK, Feb 9 (Reuters) - U.S. gold futures settled a shade higher on Wednesday after sliding to 4-1/2-month lows earlier, as gyrations in the dollar continued to dictate direction for the yellow metal, dealers said.

In platinum, prices hit a one-month low with many players in key market Asia sidelined for Lunar New Year holidays before losses were pared by the close.

Gold had its first gain in five sessions as it stayed under pressure from dollar strength and the prospect of the International Monetary Fund selling bullion from its reserves for Third World debt relief.

April delivery gold at the New York Mercantile Exchange's COMEX division edged up 20 cents to $414.50 an ounce, after trading between $411.50 -- its cheapest intraday price since Sept. 22 -- and the day's high at $415.30.

A broker at a futures commission merchant said gold had tendency to stalk the euro's moves almost tick-for-tick in recent months. "Put up a 5-minute chart in gold and a 5-minute chart in the euro -- one's following the other," he said.

A stronger dollar makes the metal less affordable to non-U.S. buyers.

"The guys in gold are looking at the euro and I see us on a glide path for the last week and a half, with support at the $410 level and resistance at $416 (basis April gold)," said the broker.

Estimated turnover was a subdued 49,000 contracts, versus 37,085 contracts in Tuesday's official tally.

Trade was thin in metals this week as Chinese dealers were mostly absent and markets were closed in Hong Kong, Indonesia, Malaysia and Singapore. Japan also will shut Friday for a three-day national holiday.

In currencies, traders pocketed profits in the dollar's recent rally on Wednesday, leading the euro a bit higher in the afternoon, as markets braced for Thursday's U.S. trade data.

After gold closed, the euro was up at $1.2808, versus $1.2773 late on Tuesday.

According to a Reuters poll, the U.S. trade deficit is expected to have narrowed to $57 billion in December after two straight months of record highs.

A mining minister in South Africa, the world's largest gold producer, said Wednesday she opposed the idea of selling IMF gold, one of several proposals currently being discussed.

Minister Phumzile Mlambo-Ngcuka told Reuters at an African mining conference in Cape Town that other minerals minsters at the event were concerned by media reports on the proposals, and they would ask the IMF for clarification.

The IMF, which will report back in April on debt relief, is the world's third-biggest holder of gold bullion, with more than 100 million ounces. Under a 1971 agreement, most IMF gold is valued at $40 to $50 an ounce, about a 10th of current market prices.

Spot gold last fetched $412.75/413.50 an ounce, near its previous New York quote at $412.60/3.40. It hit $410.40 earlier in Europe -- its cheapest since mid-October. The afternoon London fix was $411.15.

NYMEX April platinum fell $5.90 to $851.30 an ounce, after rising from the low at $847, which was its weakest since Jan. 11. Spot platinum was worth $846/850.

"It is really the Chinese being absent for new year," said a trader in at a precious metals refiner, referring to the thin trading that allowed prices to fall.

"But we have some seen support around here today and I think there will be some buying in platinum in the $840s," he said.

March palladium rose 15 cents to $180 an ounce. Spot was stable at $177/181.

COMEX March silver climbed 3.3 cents to $6.59 an ounce, dealing between $6.495 and $6.61. Spot silver reached $6.56/59 versus $6.53/56 late on Tuesday. Wednesday's fix was $6.55.

10 Feb 2005 17:54

10.02.2005 16:46:26 NY gold jumps with euro early after US trade data

NEW YORK, Feb 10 (Reuters) - U.S. gold futures bolted higher but held just below key resistance on Thursday morning, tracking a short-covering bounce in the euro, as the dollar failed to capitalize on news the massive U.S. trade gap narrowed in December, dealers said.

Silver, platinum and palladium prices got a boost from gold's gains.

April delivery gold at the New York Mercantile Exchange's COMEX division rose $2.50 to $417 an ounce by 10:09 a.m. (1509 GMT), dealing from $413.10 to $417.30 -- its highest mark since Tuesday.

Dealers said gold continued to largely follow the euro's moves, with the metal climbing off a prior 4-1/2-month low, but prices still kept to a $412-to-$418 consolidation band.

"The dollar firmed up on the economic data, but then it fell -- and gold's euro- and dollar-sensitive," James Quinn, commodities commentator at AG Edwards & Sons, said.

"Also, our ability to hold yesterday's lows at $412 also prompted a little bit of buying and I think we're going to work up to $418."

The U.S. trade deficit narrowed in December to $56.4 billion, just slightly below forecasts for $57 billion, as oil import prices had their biggest monthly fall in almost 14 years.

But the annual trade gap still widened more than 24 percent in 2004 to a record $617.7 billion, the Commerce Department said. The November trade gap was revised down to $59.3 billion from $60.3 previously, but it remained a record, with December's gap the second highest.

Dealers said they saw fund-type technical buying in both the euro and the dollar when either currency made a significant dip, which helped keep gold rangebound.

In recent sessions, the dollar had risen to a two-month peak versus the yen and three-month highs against the euro, as worries eased about the massive U.S. deficits.

Midmorning in New York, the euro rallied to $1.2885, up sharply from around $1.2808 late on Wednesday.

Brokers pegged support in COMEX April gold at $410 and first resistance up at $418.

Gold futures hit a 16-1/2-year high near $460 an ounce in early December, boosted by a declining U.S. currency, which makes dollar-denominated gold more affordable for non-U.S. buyers.

Although talk continued to swirl in the market about possible International Monetary Fund gold sales or revaluation down the road, currency moves were seen dominating for now.

Trading has been subdued this week as Chinese dealers were mostly absent and markets were shut in Hong Kong, Indonesia, Malaysia and Singapore for Lunar New Year holidays. Japan also will shut Friday for a three-day national holiday.

But top consumer India has been a buyer as lower metal prices spurred physical demand, dealers said.

Spot gold rose to $415.35/416.10 an ounce from New York's closing level on Wednesday at $412.75/413.50. Bullion hit a one-month low at $410.40 Wednesday. Thursday's afternoon fix in London was at $415.50.

March silver surged 17.0 cents to $6.76 an ounce, dealing between $6.57 and $6.77. Spot silver fetched $6.73/76, above $6.56/59 late on Wednesday. The fix was at $6.5775.

April platinum rose $13.70 to $865 an ounce, rising from a previous one-month low at $847. Spot platinum firmed to $856/861.

March palladium gained $1 to $181 an ounce. Spot edged to $178/182.

10 Feb 2005 19:11

10.02.2005 18:01:17 Gold durchbricht Widerstand bei 416 Dollar

London/Zürich, 10. Feb (Reuters) - Der Goldkurs hat am Donnerstag im europäischen Handel einen Schub durch den nachgebenden Dollar bekommen. Nach der Veröffentlichung der US-Handelsbilanzzahlen machte der Dollar zunächst zwar einen Kurssprung, bröckelte dann aber bald wieder ab. Das liess die Nachfrage nach dem gelben Metall sprunghaft steigen.

Obwohl Gold wieder ein höheres Niveau erreicht habe, brauche es jedoch mehr, um die jüngste Abwärtstendenz endgültig zu überwinden, kommentierte HSBC-Analyst Alan Williamson zunächst. Er würde in einem Durchbruch durch den Widerstand bei 416 Dollar ein klares Signal für einen Trendwechsel sehen. Diesen schaffe Gold dann im späten Handel allerdings.

Die Feinunze Gold notierte zum europäischen Handelsschluss bei 416,75/417,50 Dollar nach 412,40/413,00 Dollar am Vorabend. Das zweite Fixing in London erfolgte bei 415,50 Dollar nach 413,50 Dollar am Vormittag und 411,15 Dollar am Mittwochnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.089/16.339 (Vorabend 16.011/16.261) sfr an.

ish/par

10 Feb 2005 22:13

10.02.2005 21:45:52 NY gold, silver end higher on dollar profit-taking

NEW YORK, Feb 10 (Reuters) - U.S. gold futures closed at a nine-day high Thursday on the back of a rejuvenated euro, as the dollar failed to capitalize on news the massive U.S. trade deficit narrowed in December, traders and analysts said.

Short-covering drove silver up to six-week highs, which also fueled some buying in gold, while platinum and palladium rose as well.

"The dollar hadn't taken a beating like this for a couple of days. It was a pretty safe play to buy euros and sell dollars and I think the metals market ran with that," said Scott Meyers at Pioneer Futures.

April delivery gold at the New York Mercantile Exchange's COMEX division settled at $418.70 an ounce, up $4.20 on the day, within a range of $413 to $420.10, and reaching its highest close since Feb. 2.

Aside from currency-related interest, gold's bounce from technical support at $412 on Wednesday also attracted funds back into the precious metals today, said Leonard Kaplan, president of Prospector Asset Management.

Kaplan believes gold prices should eventually work back down to the $405 to $400 area, however, pressured by a firmer dollar going forward due to expected U.S. interest rate increases this year.

Estimated gold volume was 62,000 contracts, against Wednesday's tally of 41,438 lots. Trade has been thinned this week by Lunar New Year and the Tokyo Commodity Exchange's closure on Friday for a national holiday.

Midafternoon in New York, the euro was up at $1.2886, compared with around $1.2808 late on Wednesday.

A falling U.S. currency makes dollar-denominated gold more affordable for non-U.S. buyers.

The market also awaited further word on proposed sales or revaluation of gold stockpiled by the International Monetary Fund to finance debt relief for the world's poor nations.

U.S. lawmakers have told U.S. Treasury Secretary John Snow to oppose proposals for the sale of the IMF's gold.

In a letter to Snow, 12 senators -- from mainly U.S. mining states -- said sales of the IMF's 103 million ounces of gold reserves, the world's third-largest, would hurt gold producers and cause job losses, including in impoverished countries like Peru and Tanzania.

Meanwhile, the U.S. trade deficit narrowed in December to $56.4 billion, just a tad below analysts' forecasts for $57 billion, as oil import prices had their biggest monthly fall in almost 14 years, the Commerce Department said.

But the annual trade gap still widened more than 24 percent in 2004 to a record $617.7 billion. The November trade gap was revised down to $59.3 billion from $60.3 previously, but it remained a record, with December's gap the second highest.

Chartists pegged resistance in COMEX April gold at $421.90 and $425 with support at $412, $405 and $400.

Spot gold was last at $417.25/8.00 an ounce from New York's closing level on Wednesday at $412.75/413.50. Thursday's afternoon fix in London was at $415.50.

March silver futures surged 37.5 cents to end at $6.965 an ounce, dealing between $6.57 and $6.98 -- its highest close since Dec. 28. Spot silver priced at $6.93/96, against $6.56/59 late on Wednesday. The fix was at $6.5775.

NYMEX April platinum rose $18 to $869.30 an ounce, up from a prior one-month low at $847. Spot platinum hit $865/870.

March palladium gained $2.25 to $182.25 an ounce. Spot edged to $177.50/182.50.

11 Feb 2005 08:34

11.02.2005 08:04:16 Europe gold opens higher as dollar rally stalls

* Gold opens marginally higher in Europe at $417.50/418.25 per troy ounce by 0700 GMT, from late New York's $417.25/418.00 on Thursday.

* Market supported by a softer dollar due to investor concerns over a record U.S. trade deficit, despite narrowing the gap slightly in December.

* Spot silver follows gold higher, quoted at $6.98/7.01 from $6.93/6.96 in New York.

* Spot platinum flat at $865.00/870.00. Palladium also steady at $177.50/182.50.

11 Feb 2005 08:35

11.02.2005 07:36:43 Gold price edges up in Asia after New York gains

(Updates to afternoon)

SYDNEY, Feb 11 (Reuters) - Gold built on earlier gains in Asia on Friday amid subdued activity to rise about $1 ahead of more active European trading.

Spot gold advanced to about $418.25/$418.75 an ounce from $417.00/$417.75 in late New York and Thursday's afternoon fix of $415.50.

Asian trading was light, with several countries in the time zone closed for Lunar New Year holidays and Japan closed for a national holiday, limiting price moves, dealers said.

A generally softer U.S. dollar was supporting gold by encouraging bullion purchases in other currencies, according to dealers.

Gold was put on an upward path late on Thursday as gold futures in New York reacted to a weaker U.S. dollar.

April delivery gold at the New York Mercantile Exchange's COMEX division settled at $418.70 an ounce, up $4.20 on the day, within a range of $413 to $420.10, and reaching its highest close since Feb. 2.

That sentiment spilled into Asian markets, one dealer said.

The U.S. dollar was $1.2873/77 versus the euro , compared with $1.2877 in New York.

Against the yen , the dollar was steady on late New York levels at 105.82 yen.

Platinum was $2 higher at $867/$872 an ounce, while palladium was unchanged at $177.50/$182.50 an ounce.

Silver was up 7 cents to $7.01/$7.07 an ounce.

Die Forward-Rates auf 6 u. 12 Monate jetzt höher wie die kurzen,das schaut gut aus!

11 Feb 2005 17:24

11.02.2005 13:36:04 Silver fixes up sharply, Europe gold consolidates

* Silver fixed sharply higher on Friday at 698.00 cents per ounce compared with 657.75 cents at previous fix.

* Spot silver firm after hitting highest since late December at $7.03 on gains in gold. Last at $7.02/7.05 by 1220 GMT from $6.93/6.96 in New York on Thursday.

* Silver forward rates on Reuters page indicated at 2.444, 2.462, 2.500 and 2.460 for one, three, six and 12 months respectively.
* Gold firms to $417.50/418.25 per troy ounce by 1220 GMT from late New York's $417.25/418.00 on Thursday.

* Market consolidating after sharp jump to one-week peak at $418.45 on Thursday. Dollar under pressure due to investor concerns over a record U.S. trade deficit, despite narrowing the gap slightly in December. Euro last at $1.2863.

* Spot platinum slightly firmer at $866.00/870.00 from $865.00/870.00. Palladium at $178.00/182.00 from $177.50/182.50.

11 Feb 2005 17:27

11.02.2005 17:26:46 COMEX silver soars to 2-mth high early, gold gains

NEW YORK, Feb 11 (Reuters) - U.S. silver futures shot to their loftiest in two months on Friday and gold traded at eight-day highs, as a softer dollar late this week catapulted the metals up through technical resistance, dealers said.

"It was short covering, and there was fund buying overnight that pushed this thing up," said a silver floor broker. "And the trade is helping it along. It just snowballed."

By 11:05 a.m. (1605 GMT), silver for March delivery had surged 24.5 cents, or 3.5 percent, to $7.21 an ounce on the New York Mercantile Exchange's COMEX division. It moved from $6.945 to $7.24 -- its priciest since Dec. 8. The market rose 37.5 cents on Thursday.

Spot silver hit $7.16/19, way above Thursday's late New York quote at $6.93/96. Friday's London fix was at $6.98.

The gray metal extended its rally because, unlike in the gold market, players did not currently see central bank selling in the market, which allowed it to rise almost untethered, said one analyst.

"We've seen a technical break to the upside in silver, and that is because we don't see central bank selling in the silver market," said Ian MacDonald, managing director of precious metals at International Asset Holding Corp.

Gold also rose, drawing support from its bounce from $412 support and from apparent U.S. opposition to proposed sales of gold held by the International Monetary Fund to finance Third World debt relief, said analysts.

April gold was up $2.70 at $421.40 an ounce, trading between $417.70 and $421.90, and touching its highest since Feb. 3.

Currencies should dictate further direction, sources said.

"The dollar is whipping around and still very much in a trading range," said MacDonald.

Chartists traced resistance in April gold at $422.70-$423 and then at $428, with support at $412 to $415, followed by $405 and $400.

Against the dollar, the euro was at $1.2876 by midmorning, not far from Thursday's late levels.

The U.S. currency tumbled on Thursday, which made dollar-denominated gold more affordable for non-U.S. buyers.

Spot gold rose to $419.85/420.60 an ounce, versus $417.25/8.00 previously. Friday's late fix in London was at $418.85.

Trade in gold has been thinned this week by the Lunar New Year and the Tokyo Commodity Exchange's closure on Friday for a national holiday.

April platinum rose 70 cents to $870 an ounce. Spot platinum fetched $868/873.

March palladium slipped 25 cents to $182 an ounce. Spot edged to $179/182.

11 Feb 2005 18:13

11.02.2005 17:45:06 Commodities News Summary

TOP NEWS
> Precious metals end European week on high note [nL11209718]

LONDON - Precious metals prices headed resolutely higher in Europe on Friday afternoon when a dip in the dollar triggered end-week buying and covering, traders said.

Gold crossed $420.00 an ounce, the highest for a week, while silver shot above $7.00 to reach a two-month peak amid speculative and stop-loss buying, traders said.

- - - -

> Iraq seeks to buy 100,000 to 150,000 T US wheat [nN11522750]

CHICAGO - Iraq's state-run Grain Board said on Friday it was tendering to buy 100,000 to 150,000 tonnes of hard white milling wheat from the United States.

The agency said on its Web site that the wheat was for delivery in April and May.

- - - -

> EU wheat export subsidy seen staying low [nL11122108]

PARIS - European Union wheat export subsidies are unlikely to rise soon, even though stocks are mounting and the low refunds awarded at tenders this week and last have failed to spur sales to key markets, analysts said on Friday.

The European Commission on Thursday awarded a four euro subsidy on exports of 185,000 tonnes of wheat, maintaining the level seen at last week's tender, the first for 18 months.

- - - -

METALS > COMEX copper off early in light trade, eyes dollar [nN11371365]

NEW YORK - U.S. copper futures declined in thin trading Friday morning amid light arbitrage selling and some investor profit-taking following Thursday's rise, floor traders said.

- - - -

> Russian RUSAL plans 40,000-tonne magnesium smelter [nL11148134]

MOSCOW - The world's third largest aluminium producer, Russia's RUSAL, plans to build a magnesium smelter with a capacity of 40,000 tonnes per year in the Volgograd region on the Volga river, RUSAL said on Friday.

- - - -

> Ukraine resumes magnesium output after a decade [nL11702944]

KIEV - Ukraine has resumed metallic magnesium output at its sole plant Mahniy after nearly a decade of stalled production, company head Mykhailo Petriv said on Friday.

"We resumed output in January and produced the first tonnes of the metal," he told Reuters by telephone from the company's headquarters in the western Ukrainian town of Kalush.

- - - -

GRAINS/OILSEEDS/LIVESTOCK
> CBOT soy climbs on follow-through, led by March [nN11538073]

CHICAGO - Soybean futures at the Chicago Board of Trade climbed on Friday on follow-through short covering, traders said. Also supportive were concerns about dry weather in Brazil's No. 3 soy state of Rio Grande do Sul, which was expected to stay mostly dry through Wednesday.

- - - -

> CBOT wheat turns down as big global stocks weigh [nN11520814]

CHICAGO - Wheat futures at the Chicago Board of Trade turned lower early on Friday as the big global stocks of wheat continue to weigh on prices, traders said.

- - - -

> EU wheat markets quiet, await higher refunds [nL11530726]

PARIS - Europe's wheat prices were stable to slightly higher in very light trade on Friday after the EU failed to raise the level of its export subsidy, and traders said they were waiting for signs of an improved export picture.

- - - -

SOFTS > Trade house seeks freight 10,000 t sugar to Cuba [nL11648080]

LONDON - A trade house has circulated an order in the freight market to move around 10,000 tonnes of bagged white sugar for March shipment to traditional exporter Cuba, trade sources said on Friday.

- - - -

> London coffee up, could test recent 2-year high [nL11713348]

LONDON - London robusta futures were trading higher on Friday, eyeing a test of the recent two-year peak after a brief stint of fund buying when the market opened, traders said.

Most-active May coffee rose eight pounds to 861 pounds a tonne by 1233 GMT after moving between 853 and 867. The contract accounted for 3,345 lots of the total 6,780 lot total.

- - - -

> Shy buyers, low arrivals hit Europe physical cocoa [nEUCOC1]

LONDON - Slack arrivals from West Africa and industry reluctance to buy amounted to a standoff in the European cash cocoa market over the past week, traders said on Friday.

The flow of cocoa from top producers Ivory Coast and Ghana has been dogged by industrial setbacks, political instability and bad weather and the mid-crop looks unlikely to compensate for the shortfall.

- - - -

STEEL

11 Feb 2005 20:52

11.02.2005 20:36:09 NY gold & silver settle higher on fund buying

NEW YORK, Feb 11 (Reuters) - U.S. silver futures closed at a two-month peak on Friday while gold hit a nine-day high, fueled by speculative fund buying due to a softer dollar late this week, dealers said.

Silver for March delivery rose 24.5 cents, or 3.5 percent, to end at $7.21 an ounce on the New York Mercantile Exchange's COMEX division. It moved between $6.945 and $7.24 -- its priciest since Dec. 8.

The gray metal climbed 37.5 cents on Thursday as precious metals started rallying amid calculations that the U.S. trade deficit would weigh on the dollar.

A weaker greenback makes dollar-priced metals like silver and gold more affordable for non-U.S. buyers.

Spot silver was last at $7.16/19, way above Thursday's late New York quote at $6.93/96. Friday's London fix was at $6.98.

"With gold and the base metals looking steady for the moment and the dollar on a weaker footing, it seems silver could extend its gains in the coming sessions," said James Moore of TheBullionDesk.com.

Dealers put resistance in COMEX March silver at $7.24 and then at $7.35/40, with support at $7.15 and $7.05. In spot, the upside target was $7.25/40

Gold gained also, drawing support from its bounce from $412 support previously and from apparent U.S. opposition to proposed sales of gold held by the International Monetary Fund to finance Third World debt relief, said analysts.

April gold climbed $3.30 to close at $422 an ounce, trading from $417.70 to $423.40 -- its highest close since Feb. 2.

Currencies mostly would dictate further direction in gold, dealers said, though geopolitical concerns also supported it.

"With the risk of further escalation in the tensions between Iran, North Korea and the U.S. over the weekend, traders are unlikely to go home short," Moore said.

Chartists put resistance in April gold at $423 and then at $428, with support at $412-$415, and then $405 and $400.

Against the dollar, the euro fetched $1.2871 by midafternoon, not far from Thursday's late levels.

Spot gold hit $420.50/1.25, versus $417.25/8.00 previously. The London late fix was at $418.85.

Trade in gold has been thinned this week by the Lunar New Year and the Tokyo Commodity Exchange's closure on Friday for a national holiday.

April platinum rose $1.90 to $871.20 an ounce. Spot platinum changed hands at $868/872.

March palladium was up $2.70 at $184.95 an ounce. Spot hit $181/185.

14 Feb 2005 13:42

14.02.2005 13:02:23 Europe gold, silver move higher as dollar slides

LONDON, Feb 14 (Reuters) - Gold and silver prices were firm in Europe on Monday, underpinned by a sliding dollar as Japanese data threw up imbalances between Asian trade surpluses and U.S. deficits, dealers said.

Spot gold stood at $422.50/423.25 an ounce by 1147 GMT, compared with $420.50/421.25 late in New York on Friday. The market touched $423.25 at one stage -- last seen at the end of December.

Silver sat just below a two-month high of $7.28 and last traded at $7.24.7.27, compared with $7.16/7.19 in New York previously. The euro was last at $1.2977.

"Gold and the euro broke through some trend lines...We haven't seen too much selling -- making this afternoon potentially interesting," one dealer said.

"If we can maintain momentum, $430 would not be out of the question," he added.

The dollar dropped almost one percent against the yen and euro -- making dollar-priced gold more attractive for non-U.S. investors -- as Japan's current account surplus rose 35.1 percent in December to a record 1.616 trillion yen.

Dealers said, however, that investors might be reluctant to sell the dollar more aggressively before a much-awaited speech by U.S. Federal Reserve Chairman Alan Greenspan later in the week.

Greenspan will give twice-yearly testimony on monetary policy to the U.S. Senate on Wednesday and the House of Representatives on Thursday.

Dealers said the market would also focus on Tuesday's release of U.S. capital flows in December to see how well the country was funding its current account deficit.

Although gold had moved away from the four-month lows hit last week at $410.40, the market still had more to do to shake off its recent bear trend, with last December's 16-1/2-year peak of $456.75 still distant.

"We think it is too early to turn short-term bullish on gold in light of probably negative IMF gold headlines looming ahead of the April IMF meeting in Washington," John Reade of UBS Investment Bank said of the IMF study on how to use its huge gold reserves to help Third World debt relief.

Platinum metals were also firmer, with spot platinum quoted at $873.00/878.00 from $868.00/872.00, while palladium was last at $182.00/186.00 from $181.00/185.00.

14 Feb 2005 17:33

14.02.2005 17:23:08 Europe gold ends higher, data undermines dollar

* Gold ends European trading higher on Monday at $423.50/424.25 per troy ounce by 1615 GMT, from late New York's $420.50/421.25 on Friday.

* Market seen testing $425 resistance ahead of $428 in next few sessions, underpinned by the dollar sliding sharply.

* Japan's current account surplus rose 35.1 percent in December to a record 1.616 trillion yen -- highlighting inbalances with U.S. deficits. Euro last at $1.2971.

* Spot silver firm after rallying to two-month peak at $7.28 earlier. Quoted at $7.24/7.27 from $7.16/7.19 in New York.

* Spot platinum moves up to $875.00/879.00 from $868.00/872.00. Palladium up at $184.00/187.00 from $181.00/185.00.

14 Feb 2005 17:34

14.02.2005 17:13:36 Commodities News Summary

TOP NEWS
> UPDATE 1-Europe gold, silver move higher as dollar [nL14430408]

LONDON - Gold and silver prices rose in Europe on Monday, underpinned by a sliding dollar as Japanese data threw up imbalances between Asian trade surpluses and U.S. deficits, dealers said.

- - - -

> UPDATE 2-Copper soars above $3,100/T on LME due we [nL14351105]

LONDON - Three-month London Metal Exchange (LME) copper futures broke above $3,100 a tonne resistance in dollar-inspired rally during midsession trade on Monday, traders said.

- - - -

> UPDATE 2-Japan surplus up but exports seen weak fo [nT107279]

TOKYO - Japan's current account surplus rose sharply in December, helped by a surge in dividend and interest payments from overseas, but economists expect slack exports to weigh on the economy for a while.

- - - -

> UPDATE 2-China demand lifts selenium to 28-yr high [nL14299372]

LONDON - Strong growth in China's construction and farm industries has pushed up selenium prices to new 28-year highs in Europe, industry sources said on Monday.

- - - -

METALS > INTERVIEW-Angloplat hot on Chinese platinum demand [nL14329226]

JOHANNESBURG - Chinese platinum jewellery buying was better than expected late last year despite high prices, raising the prospect that demand numbers might have to be rejigged, top platinum producer Angloplat said on Monday.

- - - -

> UPDATE 1-Rhodium hits 3-1/2-year peak amid leasing [nL14235805]

LONDON - Rhodium prices hit their highest since mid-2001 in Europe on Monday, forced higher by a persistent squeeze on lease rates, traders said.

- - - -

> UPDATE 3-Angloplat earnings rise but shares dip as [nL14627903]

JOHANNESBURG - The world's top platinum producer, Angloplat (AMSJ.DE), posted a 17 percent rise in 2004 earnings on Monday thanks to stronger metals prices, but its shares dipped on worries about cost control.

- - - -

> INTERVIEW-Zambia mine sees 14,000T annual copper o [nLA331103]

LUSAKA - Zambia's Chibuluma Mines Plc aims to produce 14,000 tonnes of finished copper in 2005 after investing $30 million to develop a new mining site, a senior mine official said on Monday.

- - - -

GRAINS/OILSEEDS/LIVESTOCK > Russia may make EU wait to last minute on food ban [nL14309252]

BRUSSELS - EU vegetable exporters may have to wait to the last minute to see if Russia bans their products due to food safety concerns, despite glimmers of hope appearing after Moscow settled its row with one country, the Netherlands.

- - - -

> UPDATE 1-Russia to restart Dutch flower imports on [nL14349619]

MOSCOW/AMSTERDAM - Russia said on Monday it will restart imports of flowers and some other plant products from the Netherlands as of Tuesday, ending months of trade disputes between the two countries.

- - - -

> Hungary invites grain storage offers [nL14411594]

BUDAPEST - Hungary invited offers from stores in Belgium and Germany to take intervention grain for which no space has been found in Hungary, the Agriculture Ministry said on its http://www.fvm.hu website.

- - - -

> EU wheat prices on defensive, sellers retreat [nL11530726]

PARIS - Wheat prices in most of Europe were still on the defensive on Monday in the wake of last week's EU export tender although values in Britain edged up a little on the back of good sales business to Spain, traders said.

- - - -

> UPDATE 2-Smithfield sees quarterly profit up sharp [nN146971]

CHICAGO - Smithfield Foods Inc. (/SFD.N), the biggest U.S. hog and pork producer, on Monday said preliminary quarterly earnings were stronger than expected, as it benefited from rising hog prices and demand.

- - - -

> India bracing for good wheat crop after rains [nDL312820]

NEW DELHI - Widespread rains in northern India this month have helped the flowering of the wheat crop and output this year could top 75 million tonnes, three million tonnes more than last year, farm officials said on Monday.

- - - -

> UPDATE 1-German wheat intervention offers up sharp [nL14252741]

HAMBURG - German farmers have offered some 153,000 tonnes of wheat for European Union intervention subsidies in the past week, continuing the high level of offers seen this month, state purchasing agency BLE said on Monday.

- - - -

> Tunisia seeks to buy at least 50,000 T barley [nGH1439932]

TUNIS - Tunisia's state-run Office des Cereales said on Monday it is tendering to buy at least 50,000 tonnes of feed barley.

- - - -

SOFTS > UPDATE 1-Licht revises 2004/05 sugar output slight [nL14674706]

LONDON - Analyst F.O. Licht on Monday slightly trimmed its estimate for 2004/05 world sugar output to 142.5 million tonnes and said it expected continuing tightness in supplies to support prices.

- - - -

> Cargill buys sugar at March expiry [nL14367708]

LONDON - Cargill bought 89,850 tonnes (1,797 lots) of sugar at the expiry of the LIFFE March white sugar futures contract on Friday, Euronext (/ENXT.PA) and LIFFE said on their website on Monday.

- - - -

STEEL > UPDATE 2-ThyssenKrupp Q1 pretax profits nearly tre [nL14157825]

FRANKFURT - Pretax profits at ThyssenKrupp (TKAG.DE) nearly trebled in the three months to December driven by stronger steel results, but the company cautioned on Monday that new order growth in western Europe had begun to lose speed.

- - - -

> S.Africa firms differ on use Russia, Ukraine steel [nL1412519]

JOHANNESBURG - Harmony Gold (HARJ.DE) and DRDGOLD said on Monday they might buy steel from Russia and Ukraine after South Africa lifted import tariffs, but other local steel users said they were unlikely to follow suit.

- - - -

14 Feb 2005 17:52

14.02.2005 17:06:22 Schwacher Dollar gibt Gold Auftrieb

London/Zürich, 14. Feb (Reuters) - Der Goldkurs hat am Montag im europäischen Handel kräftig zugelegt. Damit habe das gelbe Metall an den Aufwärtstrend vom Ende der vergangenen Woche anknüpfen können, sagten Händler. Falls der Schwung beibehalten werden könnte, sei ein Anstieg bis auf 430 Dollar denkbar.

Die Kursgewinne zum Wochenanfang seien in erster Linie auf den schwachen Dollar zurückzuführen, der zum Euro knapp ein Prozent nachgegeben hatte, so Händler. "Gold und Euro haben einer Trendlinie durchbrochen", sagte ein Händler.

Damit habe Gold zwar gegenüber dem Viermonatstief bei 410,40 Dollar einiges an Boden gut machen können, doch sei das 16 1/2-Jahreshoch vom Dezember bei knapp 456,75 Dollar noch weit entfernt.

Aggressivere Dollarverkäufe, die dem in der US-Devise gehandelten Gold im allgemeinen zur Kursanstiegen verhelfen, seien vor der Anhörung des US-Notenbankchefs Alan Greenspan vor dem US-Kongress am Mittwoch und Donnerstag nicht zu erwarten, hiess es weiter.

Die Feinunze Gold notierte zum europäischen Handelsschluss bei 423,60/424,40 nach 419,05/419,80 Dollar zum Wochenschluss. Das zweite Fixing in London erfolgte bei 424,20 nach 422,80 Dollar am Vormittag und 418,85 Dollar am Freitagnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.231/16.481 (Vortag 16.175/16.425) sfr an.

pma/ish

14 Feb 2005 21:39

14.02.2005 20:36:04 NY gold & silver end at fresh highs on down dollar

NEW YORK, Feb 14 (Reuters) - U.S. gold futures closed at two-week highs and silver reached its highest since early December on Monday, cheered by an improved technical picture and the dollar's recent leg lower, traders said.

April delivery gold rose $5.30 to finish at $427.30 an ounce on the New York Mercantile Exchange's COMEX division, after trading from $421.90 to $427.70 -- its highest close since Jan. 28.

Precious metals have rallied since last week, when the recent dollar's rally seriously sputtered out amid calculations that the U.S. trade deficit would weigh on the currency.

Leading the pack higher in the last three days, silver has had a stunning reversal from support near $6.50 an ounce, gaining 60 cents, or almost 10 percent in value, while gold has rebounded from support near the $410 level.

"It seemed like the markets were oversold," said a precious metals desk trader. "Some support came into the market and everyone scrambled to cover shorts, and that has just sent everything skyrocketing.

"It's all dollar and technical," he said.

Fund and CTA (Commodity Trading Advisor) selling pressured the dollar again Monday after a jump in Japan's current account surplus highlighted worries over the imbalance between Asian trade surpluses and massive U.S. deficits. The euro was at $1.2969 by midafternoon, against $1.2871 late on Friday.

A lower dollar makes dollar-priced precious metals more affordable for non-U.S. buyers.

Dealers said geopolitical issues also played a role in attracting investors to gold as a safe haven, with increasing concerns over the Korean peninsula and tensions between the United States and Iran over Tehran's nuclear ambitions.

An apparent lack of broad support for proposed sales of gold held by the International Monetary Fund to finance Third World debt relief was supportive as well.

In gold, "you'd have to get above $430 or this would be just a short-term rally," cautioned the desk trader.

Markets seemed to be bracing for Federal Reserve Chairman Alan Greenspan's semiannual testimony to Congress Wednesday and Thursday, after his recent optimistic comments about the U.S. current account deficit.

The latest weekly Commitments of Traders data from the Commodity Futures Trading Commission showed the net fund long position in COMEX gold futures fell to 11,175 contracts as of Feb. 8 from 28,118 lots a week earlier.

"That's the smallest fund long position since Oct. 22, 2002," Tim Evans, senior commodity analyst at IFR Markets, said in a report on the data.

"While in theory the funds could just keep on selling to accumulate some short positions for a change, we think this more likely exhausts the long vulnerability, setting the stage for an eventual fresh cycle of long accumulation," he said.

Evans put technical resistance in April gold at the Jan. 30 high of $430.60, and then at $449, followed by the 16-1/2-year peak from Dec. 2 at $460.50, with support seen at $411.50.

Spot gold priced at $425.25/6.00, versus $420.50/1.25 at New York close on Friday. Monday's afternoon fix in London was $424.20.

March silver strode up 13.0 cents to $7.34 an ounce, after trading from $7.185 to $7.35 -- its loftiest close since Dec. 7. Spot silver hit $7.31/34, well above Friday's late quote at $7.16/19. Monday's London fix was at $7.245.

CFTC data showed the net fund exposure in COMEX silver futures fell 2,469 to 27,763 contracts in the latest week.

Brokers peg resistance in silver futures at $7.35/40 and $7.50/60 and then $8.235, with support at $7.09, $6.89 and $6.75/80.

April platinum rose $3.90 to a two-week closing high at $875.10 an ounce. Spot touched $874.50/879.50.

March palladium was up $3.20 at a 12-day closing peak at $188.15 an ounce. Spot was worth $183/188.

15 Feb 2005 09:43

15.02.2005 06:23:48 Gold falls in Asia on dlr rebound; Greenspan eyed

(Updates to afternoon)

SINGAPORE, Feb 15 (Reuters) - Gold fell in Asia on Tuesday after a dollar recovery against major currencies dented the metal's safe-haven appeal ahead of this week's key economic events.

Spot gold was quoted at $424.00/424.75 an ounce by 0505 GMT, against $425.25/426.00 late in New York. Dealers also booked profit after gold hit a two-week high at $425.75 an ounce on Monday amid a sliding dollar.

Some dealers expect gold to trade in $420 to $428 an ounce range this week.

The bullion market was braced for U.S. capital flows data due later in the day and Federal Reserve Chairman Alan Greenspan's semiannual testimony to Congress on Wednesday and Thursday, which is expected to provide fresh direction to the dollar.

"After his recent optimistic comments about the U.S. current account deficit, it will be interesting to see if he is still as upbeat," said N M Rothschild in a daily report.

Gold has tracked movements of the dollar against other currencies in recent weeks. A firmer dollar makes dollar-priced gold more expensive for holders of other currencies.

A weaker yen boosted Tokyo gold futures, the benchmark December gold futures contract in the Tokyo Commodity Exchange (TOCOM) rising 10 yen per gram to 1,440 yen.

Dealers expect Greenspan to say that additional, steady interest rate rises were on the way, which should uphold a bullish view on the dollar, which was trading at $1.2959 compared with $1.2977 late in New York.

"I think if he continues to raise interest rates, of course there will be a little bit of burden out there. It's not so good for gold," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "Let's see how far he goes."

Some dealers said concerns relating to North Korea's claim that it has nuclear weapons and tension between the U.S. and Iran over Tehran's nuclear ambitions would provide some support and raise gold's appeal as a safe-haven investment.

In other precious metals, spot silver was at $7.25/7.27 an ounce, against $7.31/7.34 late in New York.

Platinum was at $859/864, against $874.50/879.50, while palladium was steady at $183/188 an ounce.

On Hong Kong's Chinese Gold and Silver Exchange, tael gold (37.5 gramme ingot) was quoted at HK$3,936 by midday, compared with an opening of HK$3,939.

15 Feb 2005 11:02

15.02.2005 09:32:09 Tokyo gold at over 1-month high, Greenspan eyed

TOKYO, Feb 15 (Reuters) - Tokyo gold futures advanced to a
1-½ month high on Tuesday on increased geopolitical concerns
and the dollar's recent retreat, but traders were careful about
chasing the contracts too aggressively.

The market was also awaiting Federal Reserve Chairman Alan Greenspan's semi-annual testimony to Congress on Wednesday and Thursday, which is seen providing direction for the dollar and could influence gold prices, traders said.

The key December gold contract on the Tokyo Commodity Exchange rose to a session peak of 1,442 yen -- the highest since Jan. 5 -- but traders were careful about buying further as recent price gains have been a bit too rapid.

The key contract has gained nearly 4 percent since falling to 1,388 yen last week.

It closed at 1,436 yen per gram, up six yen or 0.42 percent from Monday's settlement. Other contracts closed up four to nine yen.

"Sentiment appears to be improving but we still have to see whether the current uptrend will last as more Asian players return from the Lunar New Year holidays," said Kaname Gokon, research section manager at Okato Shoji Co. Ltd.

"We also have to watch the trend of the dollar after Greenspan as we are not fully confident about the outlook for gold."

At 0819 GMT, spot bullion was quoted at $424.00/4.70 an ounce against $425.25/6.00 in New York.

The dollar was at 105.00/04 yen , down from 105.08 yen in late New York trade. The euro was trading at $1.2973/76 , against $1.2977 in New York.

Gold continued to be supported by safe-haven buying amid concerns about North Korea and Iran, traders said.

Jiji news agency on Tuesday cited a South Korean paper as saying North Korea had developed a new missile that is more accurate and has a longer range.

Tensions are also increasing between the United States and Iran over Tehran's nuclear ambitions.

TOCOM silver surged, with all contracts hitting a daily seven-yen limit high, except for the prompt February contract, which rose a slim 0.2 yen.

The benchmark December TOCOM silver contract closed at 238.9 yen per 10 grams up from 231.9 yen on Monday. The December contract has gained 9 percent in a week.

But the benchmark TOCOM platinum contract tumbled after a failure to test above key resistance around 2,900 yen per gram prompted active liquidation by funds, traders said.

The market turned nervous about buying platinum too heavily ahead of an earnings announcement by key platinum producer Implats on Thursday.

December platinum futures reversed course after hitting a three-month high of 2,884 yen with fund operators detected to have sold heavily, traders said.

The key contract closed down 37 yen or 1.29 percent at 2,825 yen. Other contracts ended 30 to 36 yen lower.

Precious metals refiner Johnson Matthey (JM) said on Tuesday the world platinum market was seen moving towards surplus this year, with prices easing despite firm demand.

The refiner's report came out after the TOCOM close.

JM maintained its view on the market in an update to its Platinum 2004 Review, adding that prices should stay in a $760-$880 range into mid-May 2005, but it also pointed to uncertainty about some new mining projects.

Spot platinum edged down to around $857/$861 an ounce after the report from the late Asian level of around $860. It was sharply below the late New York level of $874.50/$879.50.

South Africa's Angloplat, majority owned by mining giant Anglo American Plc., said on Monday that it would cut its output target for 2006.

Angloplat said it expected to produce 2.7-2.8 million ounces instead of the previous target of 2.9 million, due to the strong rand currency.

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 1,436 (up 6) 92,326
SILVER 238.9 (up 7.0) 2,335
PLATINUM 2,825 (down 37) 60,242
PALLADIUM 628 (up 848

15 Feb 2005 17:15

15.02.2005 17:12:11 UPDATE 1-Gold under dollar-led pressure in Europe

(updates to afternoon)

LONDON, Feb 15 (Reuters) - Gold prices were lower in Europe on Tuesday in choppy, currency-led trade, with the market abandoning a struggle to break higher when the dollar stood firm.

In other precious metals, platinum fell sharply as Asian selling overnight was compounded after a report from refiner Johnson Matthey, which continued to see the global market moving towards surplus this year.

Spot gold was quoted at $424.05/$424.80 per troy ounce by 1555 GMT, from $425.25/426.00 late in New York on Monday.

Dealers said bullion religiously followed currency moves -- spiking briefly above $426 as the euro surged over $1.30, then faltering as the dollar trimmed losses after a report on U.S. asset flows showed foreign investments were sufficient to finance the nation's current account deficit.

A stronger U.S. currency makes dollar-priced gold less attractive for non-U.S. investors. The euro was last at $1.2973.

"I think the upside is a struggle between $425 and the 100 day moving average (around $428.40). (Federal Reserve Chairman Alan) Greenspan is talking tomorrow but I think ...gold may work its way back down into the teens again," Simon Weeks, director bullion at ScotiaMocatta, said.

Net inflows of capital into U.S. assets in December slowed to $61.3 billion, from an upwardly revised $89.3 billion in November. Analysts had forecast net inflows of about $60 billion.

On a year over year basis, net inflows for 2004 rose about 20 percent to $821.8 billion from $683.6 billion in 2003.

GREENSPAN TESTIMONY
Greenspan begins twice-yearly testimony to congressional committees on Wednesday, with markets looking to see if he repeats upbeat comments made this month about the outlook for the current account.

Gold market analysts have said they expect prices to surpass 2004's 16-1/2 year peak of $456.75 this year, although further falls could be likely first.

"Dips back towards $411-15 can't be ruled out, however with the heavy consolidation already seen this year and still wide fundamentals I think we could see gold start to work back towards $440," James Moore of TheBullionDesk.com said in a daily report.

Spot platinum was last at $850.00/854.00 from $874.50/879.50 in New York after fund selling in Asia prior to a report from refiner Johnson Matthey, which saw prices easing this year as the market moved towards a surplus.[nL15716505]

Silver eased in line with gold to $7.22/7.25 from $7.31/7.34 in New York, while palladium dipped to $180.00/184.00 from $183.00/188.00.