Gold, Silver, Copper End Lower

Ivaylo
18 Dec, 2006
New York City

The declines were in line with the U.S. dollar getting ready for a weekly gain. The gold market looked vulnerable to liquidation as the dollar was overcoming its recent weakness. The mid- to longer-term expectations for gold remain upbeat due to rising investor interest and speculation of institutional dollar diversification. Copper hit a low under $3 a pound for the first time since late June as traders measured supply and demand.

[R]5:00AM Gold, silver and copper futures declined Friday on dollar strength.[/R]
Gold for February delivery finished $11.80 lower at $619.10 an ounce on the New York Mercantile Exchange. March copper declined $2.9925 a pound before ending at $3.0165 a pound, 4.1 cents lower for the session and 3.1% lower from last week. Silver futures fell in unison with with gold and copper, with its March contract shedding 97 cents to close at $12.98 an ounce. Other metals also declined with January platinum dipping $8.20 to close at $1,104.50 an ounce while March palladium slipped $6.80 to finish at $324.25 an ounce, 2.9% lower from a week ago. On the London Metals Exchange, cash prices for zinc stood at $4,464 per metric ton on Thursday.

Crude oil futures rose above $63 a barrel on Friday, finishing a week that rekindling the supply concerns on the market with news of U.S. oil inventories dropping and the decision of OPEC to reduce production in February. Crude oil for January delivery on the New York Mercantile Exchange added 92 cents to end at $63.43 a barrel Friday. Heating oil futures gained 0.52 cent to end at $1.7817 a gallon, unleaded gasoline advanced 2.13 cents to close at $1.6863 a gallon, and natural gas futures slipped 14.6 cents to finish at $7.409 per 1,000 cubic feet. At ICE Futures exchange in London, Brent crude for February, the new front month, gained 60 cents to close at $63.49 a barrel.