Post by Moses on Dec 20, 2004 12:17:48 GMT -5
CBS Markethingych
Gold futures end at 16-year high, rise $4 on week
Myra P. Saefong, CBS.Markethingych.com; mailto:mpicache@markethingych.com; Myra P. Saefong is a reporter for CBS.Markethingych.com in San Francisco.
-- Gold futures logged a gain of $4 an ounce for the week to close Friday at a level the market hasn't seen since July of 1988, boosted by a drop in the U.S. dollar and continued violence in Iraq.
Ongoing fighting in the Iraqi city of Fallujah and tensions in the Middle East have encouraged an element of safe-haven positioning ahead of the weekend, said James Moore, an analyst at TheBullionDesk.com in London.
Against this backdrop, gold for December delivery closed at $438.30 an ounce on the New York Mercantile Exchange, a closing level the market hasn't seen in more than 16 years. The contract logged a gain of $2.90 for the session and was up $4 for the week.
"Gold continues to maintain its strong uptrend and, at this point, the commodity funds and individual traders have no reason not to bid up the price in anticipation of a move to $450 an ounce," said Dale Doelling, chief market commentator at Bullion.com in Chicago.
"Talk that the Bush administration's resolve regarding a strong dollar may be waning just helped to add fuel to the selling of the greenback," he said.
A report showing that U.S. consumer sentiment stands at a three-month high failed to lift the dollar Friday. The dollar has stabilized from historical lows hit this week, but its tone is negative as focus remains on U.S. deficits.
From here, the next significant point on the technical chart for gold prices is $446, the monthly high back in 1983, said Doelling.
"A close above that would probably put the market into overdrive, taking it well above $500," he said. "A close below $432 would signal that a short-term top may have been made, but that would not negate the long-term trend."
Other metals futures also closed higher for the session as well as the week.
December silver rose 14.5 cents to close at $7.622 an ounce. It was up 1.6 percent for the week. December copper ended at $1.3945 a pound, up 2.2 cents for the day, and up 2.3 percent for the week.
The January platinum contract closed up $19.60, or 2.3 percent, at $874.20 an ounce -- up 2.9 percent from a week ago, while December palladium ended the day at $221.15 an ounce, up $5 for the day and up 1.6 percent for the week. Traders lifted prices for the platinum group ahead of Tuesday's 2004 outlook for the metals from metals refiner and marketer Johnson Matthey.
Tracking inventories, copper supplies were down 535 short tons at 42,281 short tons as of late Thursday, according to the Nymex. Silver stocks were unchanged at 102.9 million, while gold inventories stood at 5.33 million troy ounces, down 129 from the previous session.
<br>Mining indexes rise, but Coeur slips
In equities, metals mining shares closed mainly higher, sending a key index for the sector to its highest level in more than seven years.
The CBOE Gold Index (GOX) closed at 98.4 -- its highest ending level since March 1997 -- up 2.5 percent for the day and 1.8 percent for the week. A nearly 5 percent increase in shares of Anglogold Ashanti (AU) led the climb.
The Philadelphia Gold and Silver Index (XAU) rose 2.4 percent to close at 108.59, a level not seen since mid-February. It gained 1.6 percent on the week. The Amex Gold Bugs Index (HUI) closed at 241.86, up 2 percent for the day and 1.5 percent from the week-ago close. The Amex index ended at its loftiest since January.
In metals news, Coeur d'Alene Mines Corp. (CDE) said it plans to file with the Securities and Exchange Commission to offer 25 million common shares. The company also granted the underwriters an over-allotment option of 3.75 million shares. Bear Stearns and Harris Nesbitt will be co-managers. Shares of Coeur fell 13 cents, or 2.5 percent, to end at $4.99.
Harmony Gold (HMY) said its shareholders voted for the $8.1 billion hostile takeover bid for Gold Fields Ltd. (GFI). Harmony holders representing 85 percent of its shares voted at the meeting. Of the shares voted, 87.7 percent were voted in favor and 11.4 percent against the proposed merger. Harmony's stock fell 9 cents to close at $11.05. Gold Fields stock rose 2 cents at $14.18.
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Gold futures end at 16-year high, rise $4 on week
Myra P. Saefong, CBS.Markethingych.com; mailto:mpicache@markethingych.com; Myra P. Saefong is a reporter for CBS.Markethingych.com in San Francisco.
-- Gold futures logged a gain of $4 an ounce for the week to close Friday at a level the market hasn't seen since July of 1988, boosted by a drop in the U.S. dollar and continued violence in Iraq.
Ongoing fighting in the Iraqi city of Fallujah and tensions in the Middle East have encouraged an element of safe-haven positioning ahead of the weekend, said James Moore, an analyst at TheBullionDesk.com in London.
Against this backdrop, gold for December delivery closed at $438.30 an ounce on the New York Mercantile Exchange, a closing level the market hasn't seen in more than 16 years. The contract logged a gain of $2.90 for the session and was up $4 for the week.
"Gold continues to maintain its strong uptrend and, at this point, the commodity funds and individual traders have no reason not to bid up the price in anticipation of a move to $450 an ounce," said Dale Doelling, chief market commentator at Bullion.com in Chicago.
"Talk that the Bush administration's resolve regarding a strong dollar may be waning just helped to add fuel to the selling of the greenback," he said.
A report showing that U.S. consumer sentiment stands at a three-month high failed to lift the dollar Friday. The dollar has stabilized from historical lows hit this week, but its tone is negative as focus remains on U.S. deficits.
From here, the next significant point on the technical chart for gold prices is $446, the monthly high back in 1983, said Doelling.
"A close above that would probably put the market into overdrive, taking it well above $500," he said. "A close below $432 would signal that a short-term top may have been made, but that would not negate the long-term trend."
Other metals futures also closed higher for the session as well as the week.
December silver rose 14.5 cents to close at $7.622 an ounce. It was up 1.6 percent for the week. December copper ended at $1.3945 a pound, up 2.2 cents for the day, and up 2.3 percent for the week.
The January platinum contract closed up $19.60, or 2.3 percent, at $874.20 an ounce -- up 2.9 percent from a week ago, while December palladium ended the day at $221.15 an ounce, up $5 for the day and up 1.6 percent for the week. Traders lifted prices for the platinum group ahead of Tuesday's 2004 outlook for the metals from metals refiner and marketer Johnson Matthey.
Tracking inventories, copper supplies were down 535 short tons at 42,281 short tons as of late Thursday, according to the Nymex. Silver stocks were unchanged at 102.9 million, while gold inventories stood at 5.33 million troy ounces, down 129 from the previous session.
<br>Mining indexes rise, but Coeur slips
In equities, metals mining shares closed mainly higher, sending a key index for the sector to its highest level in more than seven years.
The CBOE Gold Index (GOX) closed at 98.4 -- its highest ending level since March 1997 -- up 2.5 percent for the day and 1.8 percent for the week. A nearly 5 percent increase in shares of Anglogold Ashanti (AU) led the climb.
The Philadelphia Gold and Silver Index (XAU) rose 2.4 percent to close at 108.59, a level not seen since mid-February. It gained 1.6 percent on the week. The Amex Gold Bugs Index (HUI) closed at 241.86, up 2 percent for the day and 1.5 percent from the week-ago close. The Amex index ended at its loftiest since January.
In metals news, Coeur d'Alene Mines Corp. (CDE) said it plans to file with the Securities and Exchange Commission to offer 25 million common shares. The company also granted the underwriters an over-allotment option of 3.75 million shares. Bear Stearns and Harris Nesbitt will be co-managers. Shares of Coeur fell 13 cents, or 2.5 percent, to end at $4.99.
Harmony Gold (HMY) said its shareholders voted for the $8.1 billion hostile takeover bid for Gold Fields Ltd. (GFI). Harmony holders representing 85 percent of its shares voted at the meeting. Of the shares voted, 87.7 percent were voted in favor and 11.4 percent against the proposed merger. Harmony's stock fell 9 cents to close at $11.05. Gold Fields stock rose 2 cents at $14.18.
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