Rohstoffnews

22 Feb 2005 17:55

22.02.2005 17:21:07 Gold klettert in Richtung Zweimonatshoch

London/Zürich, 22. Feb (Reuters) - Der Goldpreis ist im europäischen Handel am Dienstag auf den höchsten Stand seit Anfang Januar geklettert. Nach Aussagen von Händlern dürfte einem weiteren Anstieg nicht viel im Wege stehen. "Der Euro bewegt sich in die richtige Richtung und es schaut sehr positiv aus - es gibt nicht viele Hindernisse auf dem Weg bis 440 Dollar", sagte HSBC-Metallexperte Alan Williamson. In der Spitze erreichte der Goldpreis je Feinunze 433,90 Dollar. Anfang Januar hatte er bei 437,50 den bisher höchsten Stand in laufenden Jahr erreicht.

Die Rallye war durch eine Ankündigung der südkoreanischen Zentralbank vom Montag ausgelöst worden, nach der sie ihre Währungsreserven diversifizieren wolle. Der Dollar quittierte den Beschluss mit einem Absturz um über ein Prozent zum Euro. Dies gestaltet den Kauf des in der US-Devise gehandelten Golds für Anleger aus anderen Währungszonen billiger.

Händler sagten, dass der Goldkurs vielleicht eine Verschnaufpause einlegen könnte, wenn sich die Wogen um den Dollar gelegt haben, doch sei eine längerfristige Korrektur nicht wahrscheinlich.

Die Feinunze Gold notierte zum europäischen Handelsschluss bei 433,60/434,30 nach 427,00/427,70 Dollar zum Vortagesschluss.

Das zweite Fixing in London erfolgte bei 432,85 Dollar nach 430,75 Dollar am Vormittag und 427,15 Dollar am Montagnachmittag.

Eine Schweizer Grossbank gab den Gold-Kilopreis mit 16.095/16.345 (Vorabend 16.123/16.373) sfr an.

22 Feb 2005 17:57

22.02.2005 17:03:39 NY gold stands near 7-week high, other precious up

NEW YORK, Feb 22 (Reuters) - U.S. gold futures surged to a seven-week high on Tuesday morning as the dollar dropped sharply against rival currencies, raising the precious metal's allure for investors, dealers and analysts said.

Riding gold's coattails, silver climbed to a two-month peak and platinum and palladium prices also advanced.

By 10:35 a.m. (1535 GMT), gold for April delivery on the New York Mercantile Exchange's COMEX division was up $5.80 at $434.20 an ounce, after backing off $435.60, which was its highest level since Jan. 3.

Gold powered through resistance at $430 an ounce, mainly tracking the euro, with which it has a strong correlation.

A lower U.S. currency tends to boost metals, which are mostly priced in dollars worldwide, because they get cheaper for non-U.S. buyers.

"There was good fund buying earlier, but the dollar has come back up a little bit and we backed off the highs in gold and silver," said James Quinn, AG Edwards & Sons commodity commentator.

Brokers saw $440 as the next upside target, with support pegged at $430.

The dollar sank on worries that central banks were shifting their reserves out of dollar assets. South Korea's central bank said it planned to diversify its reserves, which are the world's fourth largest, into a greater variety of currencies.

The euro was at $1.3202 , up about 1.1 percent from late on Monday in New York.

U.S. financial markets were shut on Monday for the U.S. holiday of Presidents Day.

Gold was primed for a multi-week rally, with the latest Commodity Futures Trading Commission's Commitments of Traders data showing commercial traders are going long in gold, said John Kosar, president of Asbury Research.

Rallies in May 2004 and April 2003 began when commercials were similarly positioned, he said, noting commercials often gave a better read to momentum than the large speculators.

"You may see the net position of commercials change drastically from one week to the next, where you may not see that with the specs, who are very much mechanical traders," he said.

Technically, funds also have renewed accumulation of long positions after gold recently bottomed out, analysts said.

The latest weekly Commitments of Traders data showed the fund net long exposure in COMEX gold futures rose to 21,707 lots as of Feb. 15 from 11,175 lots a week earlier.

Spot gold priced at $432.30/3.00 an ounce, versus $427.00/7.70 at the London close on Monday. Tuesday's afternoon fix in London was at $432.85.

Silver was higher, after bolting above resistance at $7.40, in an extension of a 10-day rally. Silver, which has merits of both precious and industrial metals, also has been supported by copper's recent race to a 16-year high.

March silver rose 5.8 cents to $7.475 an ounce, trading from $7.365 to $7.57 -- its loftiest level since Dec. 8. Spot reached $7.45/48 from $7.39/41 previously in London. The fix was at $7.55.

CFTC data showed the silver fund net long exposure rose to 36,974 lots from 27,763 lots previously.

April platinum climbed $7.50 to $873 an ounce. Spot touched $872/876.

March palladium rose $1 to $184 an ounce. Spot stuck around $180/184.

22.02.2005 18:33:55 UPDATE 5-Metals motor to new highs as dollar falls

(updates prices, adds quote)

By Clare Black

LONDON, Feb 22 (Reuters) - Industrial metals prices accelerated to new multi-year highs on Tuesday, while gold neared its peak for the year as the dollar fell on fears central banks were shifting reserves out of dollar assets.

Copper futures climbed to new 16-year highs and zinc hit levels last seen in October 1997 as the weaker dollar encouraged fund buying on the London market.

Spot gold jumped 1.6 percent to its highest since the start of the year at $433.90 a troy ounce, while spot silver was fixed at its highest since early December.

Commodities are the current darling of the financial world as relatively weak performances by equities and bonds spur investors to cast their nets wider in the search for yield.

"The performance of commodity investments has picked up strongly this week, buoyed by a further round of dollar weakness and concern about tight oil markets," Barclays Capital said in a daily report.

"The industrial metals sector has been the outstanding performer so far in February."

SUPPLY TIGHTNESS
Mining equities were also boosted earlier in the day on news that Japan's biggest steel maker paid a supplier over 70 percent more for iron ore in the coming year -- highlighting that tight supplies should keep prices firm.

"When these markets get extremely tight and inventories get low, as they certainly are in copper and in nickel...the degree of price volatility does tend to go up," said Adam Rowley, metals analyst with Macquarie Bank.

London Metal Exchange copper for three-months delivery peaked earlier at $3,260 a tonne, just off its January 1989 record of $3,280.

The metal ended at $3,242, still up more than one percent on Monday's close.

Genuine supply tightness and chronic under-investment in many commodity sectors, but notably in oil and industrial metals, have underpinned price rises.

World copper supplies remain tight -- global LME copper stocks are about 19 percent of what they were a year ago -- but traders said technical considerations and dollar movements were more influential in moving the market this week.

The dollar fell on Tuesday, hurt by market worries that central banks were diversifying reserves out of U.S. assets.

A falling U.S. currency makes dollar-denominated commodities cheaper for overseas investors.

GOLD BUOYANT, ZINC AT HIGHS
Analysts said gold, which has struggled to rally decisively since hitting a 16-1/2-year peak in December at $456.75, might move much higher.

"The funds are still very underweight gold...so there's a lot of room," HSBC metals analyst Alan Williamson said.

"The euro is moving in the right direction so things are looking very positive."

Zinc , which has jumped 10 percent this year, touched its highest since October 1997 at $1,397, but also mirrored copper's later slight retracement to finish at $1,391, still up $23.

Belgium's Umicore said on Tuesday it planned to cut its annual zinc production by 130,000 tonnes to focus on the production of specialty zinc products [NL22478622].

Specialist metals were also up, with chrome prices at their highest since June 1998 on strong demand from the aerospace industry.

Prices of mobile-phone metal gallium hit a 2-1/2-year high.

22 Feb 2005 21:02

22.02.2005 20:43:42 NY gold closes at 2005 peak, other precious follow

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NEW YORK, Feb 22 (Reuters) - U.S. gold futures settled at their highest for the year on Tuesday as the dollar dropped sharply against its rivals, raising the allure of precious metals for overseas investors, traders and analysts said.

Riding on gold's coattails, silver climbed to a two-month peak and platinum and palladium prices also gained.

Gold for April delivery on the New York Mercantile Exchange's COMEX division ended at $435.80 an ounce, up $7.40 and at its highest on a closing basis since Dec. 30. The session's trading range was $427.40 to $436.40.

Gold powered through a key chart resistance point at the $430 level on Tuesday, as traders took their cue from a surging euro, with which gold has an extremely strong correlation.

"There was good fund buying today," said Tom Boustead, metals analyst at Refco. "It was a combination of the weakness we saw in the dollar and it's getting a lift from the crude oil."

The dollar tumbled on worries that central banks were shifting reserves out of dollar assets. South Korea's central bank said it planned to diversify its reserves, which are the world's fourth largest, into a greater variety of currencies.

A weaker dollar usually boosts dollar-denominated metals by making them cheaper for non-U.S. buyers.

At gold's close, the euro was at $1.3233 , up 1.3 percent from late on Monday.

NYMEX front month crude oil surged 5.9 percent, or $2.80, to $51.15 a barrel. Higher oil prices tends to increase the appeal of gold as a safe haven investment.

"I think (gold) has some upward momentum and it's going to take crude to come off and the dollar to start stabilizing before we say that the bias isn't higher still," Boustead added.

Analysts saw $440 an ounce as the next upside target, with support pegged down at $430.

John Kosar, president of Asbury Research, said gold was primed for a multiweek rally, with the latest Commodity Futures Trading Commission's Commitments of Traders data showing commercial traders are going long in gold.

Gold rallies in May 2004 and April 2003 began when commercials were similarly positioned, he said, noting thatcommercials often gave a better read to the market's momentum than did the large speculators.

However, the funds also seemed to have renewed their accumulation of long positions in gold after the market recently bottomed out, analysts said.

The latest weekly CFTC data showed the fund net long exposure in COMEX gold futures rose to 21,707 lots as of Feb. 15 from 11,175 lots a week earlier.

Spot gold priced at $434.20/4.90 an ounce, up from $427.00/427.70 at the London close on Monday. Tuesday's afternoon fix in London was at $432.85.

U.S. financial markets were shut on Monday for the U.S. holiday of Presidents Day.

Silver was higher, after bolting above resistance at $7.40, in an extension of a recent technical rally. Silver, which has merits of both precious and industrial metals, also has been supported by copper's recent race to a 16-year high.

March silver rose 10.3 cents to $7.52 an ounce, trading from $7.365 to $7.57 -- its highest close since Dec. 7. Spot reached $7.50/53, versus $7.39/41 previously in London. The fix was at $7.55.

CFTC data showed the silver fund net long exposure was up at 36,974 lots, compared with 27,763 lots previously.

April platinum climbed $10.10 to end at $875.60 an ounce. Spot held at $872/876.

March palladium rose $1.75 to $184.75 an ounce. Spot was stable at $180/184.

23 Feb 2005 10:25

23.02.2005 09:14:12 TOCOM gold regains ground after New York rise

TOKYO, Feb 23 (Reuters) - Tokyo gold futures regained ground on Wednesday with the benchmark contract closing at a fresh two-month high as it took its cue from the strong performance of the New York market with a soft yen providing support.

The benchmark silver contract on the Tokyo Commodity Exchange also performed strongly, finishing at an 11-week high.

The benchmark December gold contract on TOCOM rose 17 yen to finish at 1,464 yen, just a yen off the day's top and the highest level since the gold benchmark hit 1,483 yen on Dec. 28.

The session trough was at 1,458 yen.

Sentiment for gold, which enjoyed a nine-day bull run until Monday, was expected to be firm for the time being, market participants said.

"The next line of resistance is likely to be 1,480 yen, and it could test 1,500 yen after that," a Tokyo-based analyst said.

Other TOCOM gold contracts rose by 15-18 yen, while the spot February contract expired up nine yen at 1,462 yen.

U.S. gold futures settled at their highest for the year on Tuesday as the dollar dropped sharply against its rivals, raising the allure of precious metals for overseas investors.

Gold for April delivery on the New York Mercantile Exchange's COMEX division ended at $435.80 an ounce, up $7.40 and at its highest on a closing basis since Dec. 30.

Bullion backed off slightly in Asia on Wednesday in light profit-taking after surging to its highest level this year the previous day.

Spot gold was fetching $433.85/$434.35 an ounce at 0630 GMT, down from $434.20/$434.90 last quoted in New York.

Total gold turnover on TOCOM was estimated at a healthy 98,747 lots, up from Tuesday's 50,124 lots.

In the currency market, the dollar rebounded against the euro and the yen after South Korea said that plans to diversify its foreign exchange reserves did not mean it would sell the U.S. currency.

The rise in the U.S. dollar gained momentum after a Japanese Finance Ministry official told Reuters that Japan had no plans to diversify its foreign exchange reserves, the largest in the world at almost $850 billion -- by buying euros.

The U.S. currency was fetching 104.68/104.71 yen at 0630 GMT, against 104.03/104.06 yen in late U.S. trade, and recovering from a 1.5 percent slide on Tuesday.

Firm prices in New York and the softer yen also helped lift TOCOM silver.

December TOCOM silver was at 251.8 yen per 10 grams, up 1.7 yen, the highest for a benchmark since it touched 256.8 yen on Dec. 8.

It moved between 250.0-252.0 yen.

Spot silver was at $7.51/7.54 an ounce versus $7.50/$7.53 in New York.

Platinum bucked the general firm trend in TOCOM precious metals, which was mainly attributed to technical factors.

The benchmark December platinum futures contract closed down 4 yen at 2,846 yen per gram, after moving between 2,820-2,860 yen.

Spot platinum was at $868/$873, down from New York levels of $872/$876 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 1,464 (up 17) 98,747
SILVER 251.8 (up 1.7) 3,868
PLATINUM 2,846 (down 4) 54,698
PALLADIUM 612 (flat) 1,647

23 Feb 2005 10:49

23.02.2005 09:31:17 METALS - Metals seen higher, but heading for fall

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

3 MTH KERB CLOSE * SUPPORT * RESIST * RSI14 * MA10 * MA30
COPPER 3,242.0 * 3200 * 3280 * 70 * 3153 * 3073
ALUMINIUM 1,965.0 * 1900 * 1972 * 78 * 1897 * 1852
--------------- VIEWS FROM THE MARKET - Feb 23 ------------
* Dollar recovery holds copper below 16-year peaks [nSP137163]
* NY copper ends mixed as weak sentiment dlr tug [nN22571913]
* Sharp oil, dlr moves and steel shock hit stocks [nSP15832]

LONDON, Feb 23 (Reuters) - London copper prices eased in early trade in Europe on Wednesday, but investment funds' interest in metals would continue in the short term as zinc hits a 7-1/4-year peak, traders said.

"Fund buying will continue, but these levels are very high and we think we're near the peak," a trader in Tokyo said. "By the beginning of March, liquidation may start to happen."

Copper for three-month delivery on the London Metal Exchange was trading at $3,213/18 a tonne by 0820 GMT, steady from Asia trading but below Tuesday's close of $3,242 and the 16-year high of $3,259 struck earlier that day.

Zinc futures rose to $1,404.50 on Wednesday, the highest since October 1997, but by 0822 GMT it was $1,388/93, down $3 from Tuesday's close.

Copper remained poised to push towards its all-time high of $3,280 a tonne, set in January 1989, traders and analysts said as funds bought into red-hot commodity markets to hedge against a weak U.S. dollar and diversify from lower-yielding equities and bonds.

But prices -- especially those for copper -- were vulnerable at current highs, traders and analysts said.

"They're playing a high-risk game," David Thurtell, commodities strategist at Commonwealth Bank of Australia, said, referring to investors who have pushed copper up more than 6 percent in the last month.

"It's easily within China's ability to slow things down a bit, and copper would be down below $3,000 in the blink of an eye," he said.

Fast-growing China has been the driver of copper demand growth. Its economy grew 9.5 percent last year, sucking in about one-fifth of world supply of the metal used in everything from air conditioners and power stations to cables and computer chips.

Beijing last year introduced a series of credit-tightening measures to cool runaway growth, causing periodic blips in demand from China, where consumption is seen up 10 percent this year.

But mining, paper and packaging group Anglo American (AGLJ.J) (AAL.L) said on Wednesday there seemed to be no slowdown in demand from China and it expected commodity prices to remain strong for the rest of the year. [n2039]

Aluminium was quoted at $1,956/60 a tonne. It closed at $1,965 on Tuesday after hitting its highest in seven weeks. Sights are now set on $1,973, last reached in August 1995.

"Aluminium moved strongly ahead from the opening driven by further volumes of CTA/technical buying on he back of bullish chart trends and a weaker dollar," Standard Bank London analyst Robin Bhar said in a ddaily report.

"Technically, charts are overbought and a correction towards $1,930-40 or even lower is anticipated before renewed strength is seen."

23 Feb 2005 11:05

23.02.2005 09:43:30 India gold, soy futures up; sugar dips before budget

BOMBAY, Feb 23 (Reuters) - Indian bullion and soy futures rose early on Wednesday, tracking global markets, but sugar futures dipped as participants awaited next Monday's federal budget, brokers said.

April gold on the Multi Commodity Exchange (MCX) was traded at 6,224 rupees ($142.4) per 10 grams at 0705 GMT, up 1.19 percent. June gold was up 0.81 percent at 6,230 rupees for 10 grams.

Traders were awaiting U.S. consumer price data, due later in the day, which might have some impact on the U.S. currency. A weaker dollar makes dollar-priced gold cheaper for holders of other currencies and stimulates buying.

Spot gold was traded at about $434 at 0705 GMT, up from $429 around the same time on Tuesday, as the dollar fell against the euro and U.S. oil prices soared above $51 a barrel.

April gold at the COMEX division of the New York Mercantile Exchange rose $7.40 to $435.75 an ounce on Tuesday, it's highest close since Dec. 30.

"Silver is closely following gold," said another broker, adding it was expected to trade in the range of 10,900 rupees and 11,200 rupees per kg during the day.

MCX's March silver gained 1.7 percent to 11,041 rupees.

The March silver contract, which closes after a week, was quoted lower than import costs, offering arbitrage.

"Many traders are buying at the MCX and selling in the international spot and futures markets," said Ranjeet Rathod, a bullion dealer in south India.

The market tracks world prices as India imports about 70 percent of its annual gold needs of about 700 tonnes and half of its edible oil consumption of 10 million to 11 million tonnes.

Refined soyoil and soybeans contracts rose in line with world edible oil prices on worries over crop weather in Brazil, the world's second-largest soybeans producer.

March refined soyoil at the MCX rose 0.19 percent to 374.90 rupees per 10 kg, while April soyoil on the National Commodity and Derivatives Exchange (NCDEX) was up 0.11 percent at 371.45 rupees.

MCX's April soybeans firmed 1.75 percent to 1,281 rupees per 100 kg.

Soy futures rose on reports of hailstorm damage to Indian mustard crop in the past week.

Sugar futures dipped as traders were uncertain about changes in government policies in the federal budget on Feb. 28.

"Many players are on the sidelines ahead of the budget," a broker said.

NCDEX's March sugar fell 0.11 percent to 1,895 rupees per 100 kg. ($1= 43.72 Indian rupees)

23 Feb 2005 14:43

23.02.2005 13:10:14 Gold softer in Europe, 2005 peak still in sight

LONDON, Feb 23 (Reuters) - Gold prices cooled slightly on Wednesday morning, consolidating from a currency-led jump to a seven-week high, but dealers said bullish momentum was keeping fresh gains in sight.

Spot gold stood at $433.10/433.80 per troy ounce by 1153 GMT after hitting $435.25 in Asian trade -- last seen in early January when the metal hit its peak for the year at $437.50.

That compared with $434.20/434.90 late in New York on Tuesday, when the market spiked on steep dollar losses due to worries that the world's central banks, especially in Asia, are shifting their reserves away from the dollar.

A weaker U.S. currency makes dollar-priced gold cheaper for non-U.S. investors.

Although the U.S. currency was starting to recover its losses on Wednesday, dealers and analysts said another return to weakness could push gold towards fresh gains. The euro was last at $1.3206 .

"I'd be inclined to see a day of consolidation with support at $431 initially and then $429," a dealer said.

"We should move higher again but the market may test $431 to see what the appetite is for fresh participation," he added.

Bullion had been struggling to push up this year after scaling a 16-1/2 year peak in December at $456.75 on dollar weakness, with prices dropping as the greenback started 2005 on a stronger note.

Analysts said this month's gains had re-established the market's overall bullish trend.

"If the break out above $430 is confirmed over the next two days chart watchers will be looking for further strength with $445 the ultimate target," Standard Bank said in a daily report.

Later on Wednesday, markets will focus on U.S. consumer prices in January (1330 GMT), as well as the release of minutes from the Federal Reserve's policy meeting on Feb. 1-2.

Silver was looking weaker after the market hit a six-week high on Tuesday at $7.54. Traders said the outlook for silver was shaky as technical charts showed it had moved into overbought territory although momentum was likely to stay with gold.

Spot silver stood at $7.45/7.48 from $7.50/7.53 late in New York on Thursday.

Platinum also moved back to $868.00/872.00 from $872.00/876.00 previously while palladium was at $181.00/185.00 from $180.00/184.00.

23 Feb 2005 14:54

23.02.2005 13:35:33 Silver fixes dowm, Europe gold softer on currency

* Silver fixes lower in Europe at 745.00 cents compared with previous fix at 755.00 cents. Spot metal falls to $7.45/7.48 by 1224 GMT from $7.50/7.53 late in New York on Thursday.

* Silver looking weaker, consolidating in line with gold, after hitting a six-week high on Tuesday at $7.54.

* Silver forward rates on Reuters page indicated at 2.500, 2.500, 2.550 and 2.500 for one ,three, six and 12 months respectively.

* Spot gold falls to $432.90/433.60 per troy ounce by 1224 GMT after hitting fresh seven-week high of $435.25 in Asia, and down from $434.20/434.90 late in New York on Tuesday.

* Bullion moves down as dollar steadies after South Korea provides reassurance on plans to diversify foreign exchange reserves. Euro at $1.3203.

* Platinum moves back to $868.00/872.00 from $872.00/876.00 previously, while palladium stands at $181.00/185.00 from $180.00/184.00.

23 Feb 2005 17:36

23.02.2005 17:30:26 Europe gold ends lower as dollar steadies

* Spot gold falls to end European trade at 432.10/432.80 per troy ounce by 1615 GMT after hitting fresh seven-week high of $435.25 in Asia, and down from $434.20/434.90 late in New York on Tuesday.

* Bullion moves down as dollar steadies after South Korea provides reassurance on plans to diversify foreign exchange reserves. Dollar gains later pared when U.S. inflation data came within expectations -- reducing the chance of more aggressive monetary tightening. Euro at $1.3203.

* Silver falls to $7.31/7.34 by 1615 GMT from $7.50/7.53 late in New York on Thursday.

* Silver weakens in line with gold after hitting a six-week high on Tuesday at $7.54.

* Platinum moves back to $861.00/866.00 from $872.00/876.00 previously, while palladium stands at $181.00/185.00 from $180.00/184.00.

23 Feb 2005 17:37

23.02.2005 17:30:06 Commodities News Summary

TOP NEWS
> Red-hot metals near new highs, funds hungry [nSP142119]

LONDON - Zinc and other industrial metals were around fresh multi-year highs on Wednesday, spurred on by renewed investment fund buying, against a background of a bruised dollar, traders and analysts said.

- - - -

> Gold softer in Europe, 2005 peak still in sight [nL23167117]

LONDON - Gold prices cooled on Wednesday, consolidating a currency-led jump to a seven-week high, but dealers said bullish momentum kept fresh gains in sight.

Spot gold stood at $431.70/432.40 per troy ounce by 1552 GMT after hitting $435.25 in Asian trade -- last seen in early January when the metal hit its peak for the year at $437.50.

- - - -

> Asian bird flu raises risk of global flu pandemic [nL22136341]

LONDON - Scientists fear the avian flu that has killed 46 people in Asia could be the strain that will cause the next global pandemic but said more evidence is needed about how infectious it is in humans.

"I think pandemic flu is knocking on the door," said Professor Albert Osterhaus, a leading European virologist at Erasmus University Hospital in Rotterdam.

- - - -

GRAINS/OILSEEDS/LIVESTOCK
> CBOT soybeans setback early after Tuesday rally [nN23339214]

CHICAGO - Chicago Board of Trade soybean futures set back early Wednesday after prices climbed to a five-month high on Tuesday amid aggressive technical buying by commodity funds, traders said.

May soybeans were down 6 cents at $5.77 per bushel by 9:37 a.m. CST.

- - - -

> EU wheat market drifts ahead of EU subsidy meeting [nL23132696]

HAMBURG - The main European Union wheat markets saw cautious trading on Wednesday ahead of the regular EU meeting on Thursday to decide the latest level of wheat export subsidies.

- - - -

> Analysts see Ukraine's 04/05 grain exports higher [nL23552810]

KIEV - Ukraine's ProAgro agriculture consultancy has increased the country's grain exports forecast to 9.24 million tonnes in the 2004/05 season from the previous estimate of 8.98 million, analysts said on Wednesday.

- - - -

METALS
> Brazil's CVRD seals new 71.5 pct price rise [nN23607251]

RIO DE JANEIRO, Brazil - Brazilian iron ore miner CVRD on Wednesday said it clinched a deal with South Korean steelmaker POSCO to increase ore prices by 71.5 percent this year, a day after making a similar deal with Japanese companies.

- - - -

> Miner Anglo sees no let up in demand from China [nL23268942]

LONDON - Mining group Anglo American (AAL.L) reported a sharp increase in 2004 earnings and said it saw no let up in Chinese demand that drove earnings, but shares fell as the results came in at the low end of expectations.

- - - -

> APT at high since 1970s, China ore tightness [nL23339742]

LONDON - APT tungstate rose to $120/130 a metric tonne unit (MTU) on Wednesday, with booming internal demand in China continuing to restrict availability of tungsten ores for export, traders said.

In the last 12 months prices have doubled from January 2004 levels of $65, and now stand at the highest since the mid-1970s, forced higher by China's industrialisation absorbing material that is normally exported.

- - - -

> Kazakhs to produce first primary aluminium in 2007 [nL23704263]

ALMATY - Kazakhstan, Central Asia's only producer of alumina, will produce its first primary aluminium in 2007, with output reaching 125,000 tonnes annually in 2008, the northern industrial Pavlodar region said on Wednesday.

- - - -

SOFTS > Ivory Coast cocoa farmers to march, strike next wk [nL23697868]

ABIDJAN - Ivory Coast's cocoa farmers will stage protest marches in cocoa-growing regions on Thursday to demand financing for cooperatives, a federation of farmers' unions said on Wednesday.

- - - -

© Reuters 2004

23 Feb 2005 17:39

23.02.2005 17:09:39 UPDATE 1-Gold softer in Europe, 2005 peak still in sight

LONDON, Feb 23 (Reuters) - Gold prices cooled on Wednesday, consolidating a currency-led jump to a seven-week high, but dealers said bullish momentum kept fresh gains in sight.

Spot gold stood at $431.70/432.40 per troy ounce by 1552 GMT after hitting $435.25 in Asian trade -- last seen in early January when the metal hit its peak for the year at $437.50.

That compared with $434.20/434.90 late in New York on Tuesday, when the market spiked on steep dollar losses due to worries that the world's central banks, especially in Asia, were shifting their reserves away from the dollar.

A weaker U.S. currency makes dollar-priced gold cheaper for non-U.S. investors.

Although the U.S. currency had recovered losses on Wednesday with a reassurance from South Korea on foreign exchange diversification, dealers and analysts said another return to weakness could push gold to fresh gains. The euro was last at $1.3195 .

"I think that the overall uptrend is intact. However, gold was ripe for consolidation to take some heat out of the market," one dealer said.

"We should move higher again but the market may test $431 to see what the appetite is for fresh participation," another said.

Bullion had been struggling to push up this year after scaling a 16-1/2 year peak in December at $456.75 on dollar weakness, with prices dropping as the greenback started 2005 on a stronger note.

BULLS BACK
Analysts said this month's gains had re-established the market's overall bullish trend.

"We remain positive on the outlook for gold this year and our forecast gold price is unchanged at an annual average of $455 per pounce," HSBC metals analyast Alan Williamson said.

Mining group Anglo American (AAL.L) reported a sharp increase in 2004 earnings and said it saw no let up in Chinese demand that drove profits, but shares fell as the results came in at the lower end of expectations. [nL23268942]

Anglo said it expected commodity prices to remain strong for the rest of the year.

Silver was looking weak after the market hit a six-week high on Tuesday at $7.54. Traders said the outlook for silver was shaky as technical charts showed it had moved into overbought territory although momentum was likely to stay with gold.

Spot silver stood at $7.31/7.34 from $7.50/7.53 late in New York on Thursday.

Platinum also moved back to $861.00/866.00 from $872.00/876.00 previously while palladium was at $181.00/185.00 from $180.00/184.00.

NEW YORK, Feb 23 (Reuters) - U.S. gold futures closed at a fresh 2005 high on Wednesday, as the dollar's failure to strengthen after its prior sell-off attracted dealer buying and speculative short covering in the precious metal.

April delivery gold rose 30 cents to end at $436.10 an ounce on the New York Mercantile Exchange's COMEX division, which was its highest on a closing basis since Dec. 30. The session's trading range ran from $433 to $437.40.

Gold found firmer footing as the dollar struggled to rise against the euro in the afternoon, with markets digesting U.S. Federal Open Market Committee minutes from the February meeting as well as CPI data, following the dollar's tumble on Tuesday.

"The early sell-off in gold was dollar-related, but the dip was bought back rather nicely," said Alaron Trading metals analyst David Meger.

"That added to the strength you had in the market and you saw a minimally higher close," he said. "Any further dips in the dollar will remain supportive to gold."

Meger saw chart resistance in April gold at $439 to $440 an ounce, with initial support at $433, followed by $430.

Gold closely tracks the euro, with both reacting inversely to the dollar's moves. A lower greenback makes dollar-denominated metals cheaper for non-U.S. buyers.

At midafternoon in New York, the euro was at $1.3231 , which was above morning levels but not far from late Tuesday's levels.

The dollar trimmed gains in late trading Wednesday after minutes from the FOMC's February meeting, while suggesting that U.S. interest rate hikes would continue, expressed concern about the U.S. trade deficit.

Earlier, U.S. consumer prices inched up just 0.1 percent last month, which market sources felt may help ease recent anxiety over inflation.

Excluding volatile food and energy costs, the Consumer Price Index, a widely used inflation gauge, rose 0.2 percent.

Markets had been waiting to see if recently accelerating U.S. producer prices would be mirrored by consumer prices, but the CPI reading seemed to reinforce expectations for gradual Federal Reserve interest rate increases ahead.

Frank Aburto at F.C. Stone said gold should be due for gains in the intermediate-term, supported by good physical demand and thoughts that the dollar will continue to be battered lower.

Spot gold priced at $434.25/5.00 an ounce, above Tuesday's New York close at $434.20/4.90. Wednesday's afternoon fix in London was at $432.60.

Silver slipped off previous two-month highs, with the main focus in New York on March-into-May contract rollover before the end of the month.

March silver fell 7.7 cents to end at $7.443 an ounce, moving from $7.56 to $7.275. Spot silver was at $7.44/41, against $7.50/53 previously. The fix was at $7.45.

April platinum lost $8.20 to end at $867.40 an ounce. Spot was stable at $861/866.

March palladium eased 40 cents to $184.35 an ounce. Traders are switching into the June palladium contract. Spot last touched $180.50/185.50.

23 Feb 2005 22:06

23.02.2005 21:32:36 UPDATE 6-Red-hot metals near new highs, funds hungry

(Adds New York closing prices)

By Clare Black

LONDON, Feb 23 (Reuters) - Industrial metals like zinc and copper hung near multi-year highs on Wednesday, and gold retained its allure on renewed investment fund buying against the backdrop of a tattered dollar, commodity experts said.

Global mining companies were encouraged that demand from major metals consumer China showed little sign of abating, pushing profits up by double-digit numbers.

"There was quite a bit of doom and gloom about up until last week, but all of a sudden things have perked up again," said Angus MacMillan, minerals strategist with Bache Financial.

"There has been a fresh insurge of fund money in the base metals complex."

Same for precious metals. Gold consolidated after following rising currencies on Tuesday to a seven-week high.

At the COMEX division of the New York Mercantile Exchange, gold for April delivery ended up 20 cents at $436.10 an ounce. Spot gold finished in New York at $434.25/5.00 a troy ounce versus $434.20/90 late Tuesday.

On Tuesday, the dollar suffered its biggest one-day fall against major currencies since December on reports South Korea's central bank planned to spread its massive reserves among a wider array of currencies.

It steadied after the bank said its diversification plans did not mean it would sell the U.S. currency.

Investors have poured money into red-hot commodity markets to protect against a soft U.S. dollar and diversify out of lower yielding equities and bonds, although base metals had seen a sluggish start to the year.

FUNDS LOOK AGAIN

On the London Metal Exchange (LME), the world's largest non-ferrous metals market, zinc futures traded at a fresh 7-1/4-year high of $1,404.50 a tonne on Wednesday.

The metal, used in dip galvanising to protect steel, ended with a gain of $5 at $1,396 a tonne.

Copper eased, although losses were pared into London's close. Three month LME futures ended $14 down at $3,228, having threatened on Tuesday to crack its all-time high of $3,280 a tonne, set in January 1989.

COMEX March copper rose 1.05 cent to close at $1.50 a lb.

Russell Newton, director of UK-based commodity hedge fund Global Advisors, said there had been a pick up in interest in industrial metals.

"Certainly we were a bit sceptical with copper around $3,200 and zinc at $1,300 and I think a lot of funds probably thought the metals were going to fail," he said.

"So it caught many people by surprise when they ran through...you're probably now going to see a few more trend followers starting to wade back in."

OPINION DIVIDED OVER COPPER

Opinions are increasingly polarised in the market, with some claiming prices are vulnerable to a heavy sell-off, while others say the rally still has fuel to run.

"These moves are justified by fundamentals, especially in the case of copper and I think we still have upside potential in the market," MacMillan said. "I think we've yet to see the top."

It is a similar story in nickel, which is used as an anti-corrosive in steel. Prices have gained some 17 percent since the start of the year to hit 4-1/2 month highs on Wednesday, while LME stocks have halved in the same period.

China has been driving metal demand growth. Its economy expanded a breakneck 9.5 percent last year, sucking in about one-fifth of world copper supply used in everything from air conditioners and power stations to cables and computer chips.

Mining giant Anglo American (AGLJ.J) (AAL.L) said there seemed to be no slowdown in demand from China. It reported a 59 percent rise in 2004 earnings and said it expected commodity prices to remain strong for the rest of the year.

But while mining companies revel, steelmakers are hurting after Japanese and Chinese steel mills were accepting price hikes in excess of 70 percent in iron ore prices.

Shares in companies that mine uranium are also set to jump as strong demand from nuclear power stations fuels an expected doubling in prices of the metal, hedge managers said.

24 Feb 2005 12:00

24.02.2005 09:08:44 TOCOM gold firm, looks to New York, bullion

TOKYO, Feb 24 (Reuters) - Tokyo gold futures were steady on Thursday, inspired by a strong close in New York futures and firm bullion prices, but gains were limited as most traders refrained from actively pursuing the precious metal.

The new benchmark February gold contract on the Tokyo Commodity Exchange, which debuted on Thursday, finished at the day's high of 1,469 yen. It opened at 1,466 yen and the session trough was 1,465 yen.

Other months rose by one to five yen.

A Tokyo-based analyst said some general investors were beginning to grow cautious and were refraining from actively buying TOCOM gold.

"Some players are beginning to wonder when funds, which have moved money from stock markets ... will liquidate their positions," he said.

The benchmark TOCOM gold contract continued to hover at a two-month high, at its highest level since it hit 1,483 yen on Dec. 28.

Spot gold was fetching $434.40/$435.10 an ounce at 0630 GMT, compared with $434.25/$435.00 last quoted in New York.

Total gold turnover on TOCOM was estimated at a moderate 70,168 lots, down from Wednesday's 98,747 lots.

U.S. gold futures closed at a fresh 2005 high on Wednesday, with April delivery gold rising 30 cents to end at $436.10 an ounce on the New York Mercantile's COMEX division.

It was the highest on a closing basis since Dec. 30.

At 0630 GMT, the dollar was fetching 104.73-76 yen against 104.83 yen in late New York trade.

In the currency market, the dollar eased as dealers worried if it could sustain a two-month rebound, even after the Federal Reserve reiterated its commitment to raising interest rates.

February TOCOM silver finished at 249.4 yen per 10 grams, the session high, compared with its opening price of 247.0 yen, which was also the day's low.

Other TOCOM silver contracts fell by 1.6 to 2.9 yen as the market took its cue from New York.

"TOCOM silver was a reflection of the New York market," the analyst said.

Silver slipped off previous two-month highs in New York, with March silver slipping 7.7 cents to end at $7.443 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 1,469 ( -- ) 70,168
SILVER 249.4 ( -- ) 6,910
PLATINUM 2,851 ( -- ) 39,946
PALLADIUM 626 ( -- ) 968

24 Feb 2005 14:34

24.02.2005 12:51:48 Europe gold hits fresh 7-wk high, eyes weary dollar

LONDON, Feb 24 (Reuters) - Gold prices probed higher on Thursday, squeezing out a fresh seven-week peak above $435, with sentiment buoyed by dollar weakness.

Dealers said the year's high of $437.50 reached in early January was within sight, but further dollar falls were needed to entice investor cash.

"What we have seen is that gold has been well supported when it has dipped -- another surge will see us go past this $437.50 level," Paul Merrick, vice president for commodities at RBC Capital Markets, said.

Spot gold stood at $436.00/436.70 by 1134 GMT, from $434.25/435.00 late in New York. The price briefly touched $436.25 earlier -- last seen in early January. The dollar held to a weak bias as dealers worried about whether the currency could sustain a two-month rebound, even after the U.S. Federal Reserve reiterated its commitment to raising interest rates. The euro was at $1.3259.

A weaker U.S. currency makes dollar-priced metals cheaper for non-U.S. investors.

Minutes from the Fed's Feb. 1-2 meeting, released on Wednesday, reiterated the Fed would raise rates at a measured pace, but could move faster if inflation risks increased.

Merrick said markets had been assessing whether this year's dollar strength after three years of weakness had a firm basis.

"The market is looking to see if there's anything behind the strength in the U.S. dollar that could continue to strengthen it, and if not then maybe it's going to get weaker," he said.

Bullion market analysts have said that gold should see a fourth year of gains after the price scaled its highest in 16-1/2 years in December at $456.75 per ounce.

They said the major driver for gains on gold would be dollar weakness on worries over how the world's biggest economy will fund its gapping deficits.

"Sentiment towards the bullion market continues to improve, with the recent pattern of higher highs and higher lows likely to attract renewed fund interest," HSBC metals analyst Alan Williamson said in a daily report.

Consumer demand for gold jumped seven percent in 2004 -- the first rise in four years -- with sharp price rises failing to deter buyers, the industry-backed World Gold Council (WGC) said.[nL23189207]

Global jewellery demand, accounting for a major share of consumption, rose 7.5 percent in the fourth quarter of last year compared with the year-earlier period, figures compiled for WGC by consultants GFMS Ltd showed.

Silver ticked up with gains in gold to $7.49/7.52 compared with late New York levels of $7.44/7.47.

Platinum edges up to $868.00/871.00 from $861.00/866.00, while palladium inched up to $181.00/185.00 an ounce from $180.50/185.50.

24 Feb 2005 14:49

24.02.2005 13:20:22 Silver fixes up, Europe gold holds at highs

* Silver fixed higher at 747.00 cents from previous fix at 745.00. Spot metal moves up with gains in gold to $7.47/7.50 by 1211 GMT compared with late New York levels of $7.44/7.47.

* Silver forward rates on Reuters page indicated at 2.498, 2.492, 2.550 and 2.508 for one, three, six and 12 months respectively.

* Spot gold holds firm after hitting a fresh seven-week high at $436.50 on dollar weakness. Last quoted at $436.25/437.00 a troy ounce by 1211 GMT, compared with New York's late close on Wednesday at $434.25/435.00.

* Bullion supported into dips, with any renewed weakness in the dollar seen propelling the metal towards its high for the year at $437.50.

* Platinum edges up to $868.00/871.00 an ounce from $861.00/866.00, while palladium inches up to $183.50/186.50 from $180.50/185.50.

24 Feb 2005 21:16

24.02.2005 20:49:58 NY gold ends lower as euro backslides vs dollar

((Reuters is seeking feedback from subscribers on this report. If you value the report, or would otherwise like to suggest changes to the type of content it carries, please send a brief e-mail to alden.bentley@reuters.com and cite the headline.))

NEW YORK, Feb 24 (Reuters) - U.S. gold futures ended off from their loftiest level since the start of 2005 on Thursday, pressured by profit-taking and a lower euro, although some saw the metal holding up well after recent gains, dealers said.

Gold for April delivery slipped 40 cents to $435.70 an ounce on the New York Mercantile Exchange's COMEX division, after dealing between $438.20 -- its highest level since Jan. 3 -- and $433.50.

Gold continued to ape moves in the euro, which eased against the dollar on Thursday, traders said. However, the metal remained well bid on dips above $430 after it vaulted that key technical level back on Tuesday.

James Moore of TheBullionDesk.com said the market should stay volatile over the next few months, keeping close tabs on currencies as participants await a decision on a proposal to use IMF gold to help finance debt relief for the world's poorest countries.

"The continued close correlation between gold and the euro will see the metal react to bouts of dollar strength and speculation of reductions in official holdings by various central banks," he said.

"Added to this, gold is still open to pressure as rumors of IMF sales rear their heads ahead of the meeting in April."

Analysts viewed April gold futures in a technical trading range from about $430 to $440.

Some said $450 was a reasonable target over the short term.

The dollar firmed Thursday as strong details in the U.S. durable goods orders report gave it some respite and lessened fears over record U.S. budget and current account deficits and fading support from dollar-positive rising interest rates.

At midafternoon, the euro was at $1.3193 , off from $1.3231 near gold's New York close on Wednesday.

A stronger greenback makes dollar-denominated gold less affordable for non-U.S. buyers.

A World Gold Council report showed consumer demand for gold jumped 7 percent in 2004 -- the first rise in four years -- with sharp price rises failing to deter buyers.

But the outlook for 2005 pointed to weaker growth, it said, despite an early jump in gold jewelry sales in Southeast Asia as an investment following the Indian Ocean tsunami.

In the fourth quarter of 2004, global jewelry demand -- a major share of consumption -- rose 7.5 percent compared with the year-earlier period, figures showed.

WGC said institutional investor demand was less buoyant last year, despite a rosy year-end phase after the November launch of the U.S.-listed streetTRACKS exchange-traded fund.

Spot gold changed hands at $433.75/4.50 an ounce, below Wednesday's New York close at $434.25/5.00. Thursday's afternoon fix in London was at $433.75.

March silver fell 6 cents to end at $7.383 an ounce, trading from $7.495 to $7.285. March-into-May rollover was active before Monday's first notice day for metal delivery. Spot hit $7.34/37, against $7.44/47 previously. The fix was at $7.47.

April platinum shed $2.80 to $864.60 an ounce. Spot was worth $860.50/865.50.

March palladium lost 45 cents to end at $183.90 an ounce. Some players are transferring holdings into June futures. Spot stayed at $181/185.

25 Feb 2005 10:52

25.02.2005 09:27:44 TOCOM gold hovers in narrow band, benchmark slips

TOKYO, Feb 25 (Reuters) - Tokyo gold futures were little changed on Friday as traders looked for fresh incentives to provide direction, with position adjustments ahead of the weekend mostly dominating activity.

The benchmark February gold contract on the Tokyo Commodity Exchange finished down two yen per gram at 1,467 yen, the day's low, after hitting a high of 1,472 yen.

The benchmark contract continued to trade at a two-month high and about 5.9 percent above the year's low of 1,385 yen marked on Jan. 17.

It is at its highest level since it hit 1,483 yen on Dec. 28.

The three nearby months of April, June and August rose by one to three yen, while October fell by one yen and December closed flat.

"The currency market has been a major factor shaping the precious metals market ... but there wasn't much activity in that market today," a Tokyo analyst said.

Spot gold was fetching $432.60/$433.10 an ounce at 0630 GMT, easing slightly from $433.75/$434.50 last quoted in New York.

Total gold turnover on TOCOM was estimated at 79,602 lots, up from Thursday's 70,168 lots.

U.S. gold futures ended off their loftiest level since the start of 2005, pressured by profit taking and a lower euro, although some saw the metal holding up well after recent gains, dealers said.

Gold for April delivery slipped 40 cents to $435.70 an ounce on the New York Mercantile Exchange's COMEX division, after dealing between $438.20 -- its highest level since Jan. 3 -- and $433.50.

In the currency market, the dollar traded in a thin range against the euro and the yen, as traders waited to see if U.S. economic data due later in the session would breathe life into a stalled market.

The dollar was fetching 105.33/105.41 yen at 0630 GMT, against $105.36/$105.42 yen in late New York trade.

In other precious metals, February TOCOM silver was at 246.0 yen per 10 grams, down 3.4 yen, after hitting a one-week low of 245.8.

The session high was 246.9 yen.

Spot silver was at $7.31/$7.33 an ounce versus $7.34/$7.37 in New York.

The benchmark February platinum futures contract closed down 17 yen at 2,834 yen per gram, after wavering between 2,826 yen and 2,843 yen.

Spot platinum was at $862.50/$867.50, inching up from New York levels of $860.50/$865.50 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 1,467 (down 2) 79,602
SILVER 246.0 (down 3.4) 6,912
PLATINUM 2,834 (down 17) 30,547
PALLADIUM 623 (down 3) 423

25 Feb 2005 11:33

25.02.2005 10:06:46 Indian bullion futures fall after 3-day rally

BOMBAY, Feb 25 (Reuters) - Profit-taking pulled Indian gold and silver futures down by midday on Friday after a three-day rally, but sugar rose in anticipation of festival demand next month, brokers said.

April gold on the Multi Commodity Exchange (MCX) was traded at 6,212 rupees ($142.1) per 10 grams at 0820 GMT, down from the previous close of 6,234 rupees. June gold fell 0.45 percent to 6,219 rupees.

"Indian gold futures have dropped on profit-taking and a fall in international prices," said Aditya Jhaveri, a commodity broker with Basic Commodities.

Gold was under pressure in Asia as regional currencies failed to advance on the U.S. dollar.

The precious metal was already on a downward path in more active European and North American markets overnight as a stronger U.S. dollar triggered sell orders in other currencies.

Spot gold was quoted at about $432 and ounce at 0805 GMT, down from $435 the previous day. MCX's March silver declined to 10,797 rupees per kg from 10,877 rupees. March silver at the National Commodity and Derivatives Exchange (NCDEX) dropped 0.6 percent to 10,770 rupees.

"Silver is in an overbought position and people are booking profits," said a Bombay-based broker. "We are expecting to see rangebound trade today."

Sugar futures rose on expectations that domestic prices may rise in the coming days ahead of local festivals in March.

NCDEX March sugar was up 0.26 percent at 1,902 rupees per 100 kg.

Soyoil futures fell with the beginning of oilseed harvests. Farmers were selling about 250,000 bags (of 80 kg each) of mustard every day and the figure could double by mid-March, traders said.

The market also followed soyoil futures on the Chicago Board of Trade which ended lower on Thursday, pulled by losses in soybean futures.

MCX's March refined soyoil was traded at 377.00 rupees per 10 kg, down from the Thursday's 378 rupees. ($1= 43.7 Indian rupees)

© Reuters 2004