Market Updates

Gold Declines as Dollar Edges Higher

Ivaylo
17 Jan, 2007
New York City

    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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