Market Updates

Gold Declines on Short-Covering

Ivaylo
21 Dec, 2006
New York City

    Gold and silver prices closed lower in flat trade on Wednesday at the New York Mercantile Exchange as investors covered short positions ahead of the holiday. Analysts commented that news of the reversal by the Thai government of foreign-investment rules, which had helped to support precious metals on Tuesday, pushed the metals down. Gold traded in a tight range, but the session was really dull.

[R]5:00AM Gold and silver fell Wednesday on short-covering before the holidays.[/R]
The top-traded February gold lost $1.10 to end at $624.30 an ounce while March silver moved 6.5 cents lower to close at $12.645 an ounce. January platinum gained $7.50 to finish at $1,126 an ounce while March palladium finished $1.50 lower at $327.75 an ounce. Most-active March copper declined 6.3 cents to end at $2.9545 per pound.

The front-month February crude oil contract advanced 26 cents to end at $63.72 a barrel. January heating oil gained 1.17 cents to finish at $1.7304 a gallon and January unleaded gasoline dipped 2.46 cents to end at $1.6759 a gallon. January natural gas slipped 31.4 cents to close at $6.769 a million British thermal units.

On the New York Board of Trade, December Arabica coffee futures gained 3.75 cents to end at $1.2675 a pound, with most active March up 3.70 cents at $1.2970. Futures on raw sugar in foreign ports for March declined 0.05 cent to finish at 11.99 cents a pound.

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