Market Updates
Gold Declines as Dollar Edges Higher
Ivaylo
17 Jan, 2007
New York City
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Gold futures ended lower on Tuesday, giving back earlier strength as the U.S. dollar posted slight gains and oil prices suffered from a steep decline. Gold witnessed a choppy session with initial gains being capped and swiftly reversed by dropping oil prices. Oil futures fell more than 3%, losing ground amid conflicting signals from OPEC. Other metals closed mostly lower in Nymex action on Tuesday.
[R]5:00 AM Gold futures decline on Tuesday on stronger dollar, weaker oil.[/R]
Gold for February delivery finished down by $1 at $625.90 an ounce on the New York Mercantile Exchange. March silver closed 25.5 cents lower, or 2%, at $12.625 an ounce, April platinum fell $6.30 to end at $1,145.80 an ounce and March copper futures slipped 2.55 cents to end at $2.5775 a pound. March palladium closed up 90 cents at $335.85 an ounce.
Oil stocks fell Tuesday, with a 3% drop in crude oil prices. Saudi oil minister Ali al-Naimi triggered the slide, telling reporters at an oil conference in India that he sees no need for the Organization of Petroleum Exporting Countries to launch a fresh round of output cuts. The February futures contract closed $1.78 lower at $51.21 a barrel. February gasoline futures closed down 6.27 cents at $1.3693 a gallon and February heating oil closed down 2.33 cents at $1.4803 a gallon. February natural-gas futures gained by 3.7 cents to close at $6.638 per million British thermal units, recovering from a low of $6.46.
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