Market Updates

Gold and Silver Fall

Ivaylo
18 May, 2006
Metals

    Buyers were apprehensive of the April CPI data before the market opened. The performance of gold and silver fell short of expectations after beliefs that a hike in interest rates would put further pressure on economic activity as reflected by the stock market. The relationship between the dollar and gold has become closer on account of the geopolitical scene being relatively quiet.

[R]5:00 AM Gold fails to meet price expectations.[/R]
The most-traded June gold finished $1.10 lower at $691.80 a troy ounce after hitting an earlier session high of $712.50. The rebound in early trading came after a rise was reported in U.S. inflation. Silver dashed to a trading high of $13.74 an ounce but ended down 30 cents at $13.240 an ounce. July platinum closed $13.50 higher at $1,316.40 an ounce as did palladium which also settled $6.10 up on the day at $383.10 an ounce. Copper finished down, losing 17.05 cents end at $3.6715 per pound.

June crude oil shed 84 cents to settle at $68.69 a barrel and June gasoline fell 5.10 cents to finish at $1.9751 a gallon. July Arabica coffee closed 1.2 cent down at $1.0140 a pound and raw sugar in foreign ports ended down 0.10 cent at 16.93 cents a pound.

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