Market Updates

Gold Extends Rally

Ivaylo
03 Aug, 2006
Metals

    Middle East tensions are playing a factor, along with relative weakness in the dollar. Tuesday''s breakdown in the U.S. dollar index played a key role in watching the near term for the precious metals markets. The dollar-denominated gold trades both as a commodity and a currency. It is a reserve currency and when the dollar is going down, central banks are prone to buying.

[R]5:00AM Gold, silver continue to rise due to the Middle East and the weak dollar[/R]
The most-traded December gold ended $5.30 higher at $664.10 a troy ounce, down slightly from the day''s high at $668.20. September silver finished up 50.5 cents at $12.245 an ounce. October platinum closed up $2.10 at $1,260.60 an ounce and September palladium finished up $7 at $328.95 an ounce. September copper settled down 0.2 cent at $3.5910 per pound.

The September crude-oil contract ended up 90 cents at $75.81 after rising as high as $76.50 earlier. September gasoline finished up 6.15 cents at $2.3377 a gallon and September natural gas gained 22.5 cents to settle at $7.799 a million British thermal units. Arabica coffee futures rallied to one-month highs. September ended 5.40 cents higher at $1.0370 a pound and December gained 5.30 cents to $1.0775 a pound. October futures for raw sugar in foreign ports lost 0.37 cent at 14.53 cents a pound.

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