Market Updates

Dollar and Gold Rise, Oil Fall

Ivaylo
11 Oct, 2006
New York City

    As marketmen observed a soaring dollar and retreating crude-oil prices, the realization set in that it may perhaps become difficult to achieve even a $600 price for the gold contract for 2006. The almost complete lack of emotional reactive power to the unfolding North Korean nuclear drama cast a dark shadow on gold as a safe haven. Traders are beginning to wonder just what it is that gold will react to anymore.

[R]5:00AM Gold retreats under the pressure of weaker oil and stronger dollar.[/R]
Gold for December delivery finished down $6.60 at $576.20 an ounce on the NYME, after having plunged to an intraday low of $573. December silver futures lost 20 cents to end at $11.22 an ounce, while January platinum dipped $19.20 to close at $1,075.70 an ounce and December palladium slipped $1.65 to close at $301.60 an ounce. December copper declined 3.5 cents to close at $3.378 a pound.

Crude oil for November delivery declined $1.44 to end at $58.52 a barrel on the NYME. November gasoline futures ended down 2.81 cents at $1.4668 a gallon and November heating oil shed 4.88 cents to end at $1.6809 a gallon. Natural gas futures for November delivery settled 3.7 cents higher at $6.466 a million British thermal units.

Arabica coffee futures closed slightly lower, after industry buying put an end to an early slide. December coffee finished 0.20 cent lower at $1.0285 a pound. March raw sugar futures settled 0.13 cents higher at 11.61 cents a pound, after trading as high at 11.87 cents a pound.

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