Market Updates

Gold, Silver Sharply Higher

Ivaylo
17 Oct, 2006
New York City

    The stage for this was set by the weekend resolution on North Korea, even though it was not really an important imposition of sanctions. But the fact the Security Council did pass a resolution suggests the situation is quite serious. The strength of the euro against the dollar also added to the rise of gold as it is traditionally regarded as a hedge against inflation.

[R]5:00AM Gold and silver futures advanced sharply on Monday, on dollar weakness.[/R]
December gold surged $5.80 to close at $598.50 a troy ounce on the NYME, while December silver added 23 cents to $11.91. January platinum rose $8 to $1,091.30 an ounce and December palladium gained $8.60 to $324.55 an ounce. High-grade copper futures finished sharply higher Monday, drawing some support from strength in other metals. The most active December copper contract advanced 16.75 cents to settle at $3.5810 per pound.

November crude oil futures gained $1.37 to end at $59.94 a barrel. The contract expires Friday. The November heating oil contract moved up 3.87 cents to $1.7585 a gallon. The November gasoline contract settled up 2.33 cents at $1.4917 a gallon. November natural gas gained 78.5 cents to close at $6.444 a million British thermal units.

On the New York Board of Trade, December Arabica coffee futures closed 2.15 cents lower at $1.0190 a pound, with March down 2.10 cents at $1.0590. The most-active December contract settled down $10 at $1,406 per metric ton. March futures on raw sugar in foreign ports ended 0.58 cent higher at 11.71 cents a pound.

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