Post by unlawflcombatnt on Jun 20, 2007 13:21:45 GMT -6
Below are excerpts from a story at Market Watch, titled
Gold futures close with a nearly $5 loss.
"Rising bond yields, stronger dollar, oil decline break gold's winning streak
By Polya Lesova & Myra P. Saefong....
Gold futures fell almost $5 an ounce Wednesday, closing lower for the first time in five sessions as rising bond yields, the stronger dollar and declining crude-oil prices combined to squeeze demand for the precious metal.
Gold for August delivery shed $4.70, or 0.7%, to close at $660 an ounce on the New York Mercantile Exchange. The contract broke a winning streak that had spanned four sessions and added $12 to the benchmark price.
"After four sustained days of winning sessions, gold prices were spooked once again by rising bond yields, and retreated to 'safer' ground near the $655.00 area," said Jon Nadler, analyst at Kitco Bullion Dealers.
"A new correlation is emerging between gold and bond yields, although the dollar and its relative strength are still at the root of the equation," Nadler said in e-mailed commentary.
Treasury prices were under slight pressure Wednesday, sending yields a bit higher, as prices gave back a portion of the gains scored in recent rallies....
On the currency markets, the yen fell to near a record low against the euro and a four-and-a-half year low against the dollar Wednesday on diminishing expectations that the Bank of Japan will hike interest rates more aggressively. See Currencies.
"While yesterday's gains [in gold] were encouraging, further rallies are likely to rely on ongoing pressure on the dollar and strong energy prices," said James Moore, analyst at TheBullionDesk.com, in a morning note.
"For the moment resistance is expected toward the 100-day moving average at $665.45, although clearance should generate some additional momentum for gold to target $675," he said.
Crude-oil futures fell more than $1 a barrel Wednesday, after the Energy Department reported big increases in crude-oil and gasoline stocks. Crude supplies jumped 6.9 million barrels for the week ended June 15, while motor gasoline supplies also rose 1.8 million barrels to 203.3 million....
Among the metals, silver prices followed gold lower, with the July contract losing 7.5 cents to close at $13.25 an ounce.
But July copper tacked on 4.8 cents to finish at $3.4425 a pound. September palladium added $3.40 to close at $379.90 an ounce and July platinum gained $2.30 to end at $1,300.80 an ounce.
"Supply concerns continued to underpin platinum as the outcome of wage negotiations between the South African unions and mine companies remain uncertain," said Mark O'Byrne, a director at Gold & Silver Investments Ltd.
"Should negotiations fail and strike action commence there could be a sharp upward adjustment in platinum prices," O'Byrne said in e-mailed commentary.
Gold inventories flat, silver supplies fall
Gold warehouse inventories were unchanged at 7.48 million troy ounces as of late Tuesday, according to Nymex data. Silver supplies fell by 2.5 million troy ounces to 130.2 million troy ounces, while copper supplies dropped to 23,808 short tons, down 357 short tons...."
Gold futures close with a nearly $5 loss.
"Rising bond yields, stronger dollar, oil decline break gold's winning streak
By Polya Lesova & Myra P. Saefong....
Gold futures fell almost $5 an ounce Wednesday, closing lower for the first time in five sessions as rising bond yields, the stronger dollar and declining crude-oil prices combined to squeeze demand for the precious metal.
Gold for August delivery shed $4.70, or 0.7%, to close at $660 an ounce on the New York Mercantile Exchange. The contract broke a winning streak that had spanned four sessions and added $12 to the benchmark price.
"After four sustained days of winning sessions, gold prices were spooked once again by rising bond yields, and retreated to 'safer' ground near the $655.00 area," said Jon Nadler, analyst at Kitco Bullion Dealers.
"A new correlation is emerging between gold and bond yields, although the dollar and its relative strength are still at the root of the equation," Nadler said in e-mailed commentary.
Treasury prices were under slight pressure Wednesday, sending yields a bit higher, as prices gave back a portion of the gains scored in recent rallies....
On the currency markets, the yen fell to near a record low against the euro and a four-and-a-half year low against the dollar Wednesday on diminishing expectations that the Bank of Japan will hike interest rates more aggressively. See Currencies.
"While yesterday's gains [in gold] were encouraging, further rallies are likely to rely on ongoing pressure on the dollar and strong energy prices," said James Moore, analyst at TheBullionDesk.com, in a morning note.
"For the moment resistance is expected toward the 100-day moving average at $665.45, although clearance should generate some additional momentum for gold to target $675," he said.
Crude-oil futures fell more than $1 a barrel Wednesday, after the Energy Department reported big increases in crude-oil and gasoline stocks. Crude supplies jumped 6.9 million barrels for the week ended June 15, while motor gasoline supplies also rose 1.8 million barrels to 203.3 million....
Among the metals, silver prices followed gold lower, with the July contract losing 7.5 cents to close at $13.25 an ounce.
But July copper tacked on 4.8 cents to finish at $3.4425 a pound. September palladium added $3.40 to close at $379.90 an ounce and July platinum gained $2.30 to end at $1,300.80 an ounce.
"Supply concerns continued to underpin platinum as the outcome of wage negotiations between the South African unions and mine companies remain uncertain," said Mark O'Byrne, a director at Gold & Silver Investments Ltd.
"Should negotiations fail and strike action commence there could be a sharp upward adjustment in platinum prices," O'Byrne said in e-mailed commentary.
Gold inventories flat, silver supplies fall
Gold warehouse inventories were unchanged at 7.48 million troy ounces as of late Tuesday, according to Nymex data. Silver supplies fell by 2.5 million troy ounces to 130.2 million troy ounces, while copper supplies dropped to 23,808 short tons, down 357 short tons...."