Market Updates

Gold Declines On Dollar Strength

Ivaylo
11 Sep, 2006
Metals

    The strenghtening of the U.S. dollar, especially against the euro currency, has really changed the tone to the metals markets. It was more commodity fund liquidation after traders ran into the market on Tuesday. They all started unwinding their positions on Thursday and it continued on Friday. Also, technically oriented selling sent copper futures lower.

[R]5:00AMGold futures fell on Friday on a strong dollar and falling oil price.[/R]
December gold fell $7.60 to $617.30 a troy ounce on the NYME. December silver lost 40 cents to $12.295 an ounce. October platinum settled down $27.40 to $1,229.50 an ounce and December palladium sank $21.90 to $333.60 an ounce. December copper contract shed 8 cents to settle at $3.5680 per pound.

The October crude oil contract lost $1.07 to end at $66.25 a barrel after hitting an intraday low of $66.00, the lowest level for a front month contract since April 5. The October heating oil declined 4.44 cents to $1.8432 a gallon and the October gasoline ended down 3.19 cents at $1.6098 a gallon.

October natural gas finished down 4.3 cents at $5.675 per million British thermal units. On the New York Board of Trade, September Arabica coffee futures closed down 1.05 cents at $1.0245 a pound and December lost 1.45 cents to $1.0615. Futures on raw sugar in foreign ports for October advanced 0.27 cent to settle at 11.89 cents a pound.

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