Gold up on Weaker Dollar

Ivaylo
10 Jul, 2007
New York City

Gold futures gained Monday on a softer dollar, higher energy prices and worries over recent world political events. Other commodities markets ended mixed. In the energy market, gasoline finished higher as BP PLC''s shutdown of a large oil-processing unit raised supply concerns. In Chicago, corn prices decloined amid forecasts for wetter, cooler weather in the Midwest.

[R]5:30AM Gold, silver gain while corn finishes lower.[/R]

Gold kept clambering out of its late-June trough of $638 an ounce, with the August contract advancing $7.70 an ounce to end at $662.50 on the New York Mercantile Exchange, supported by the dollar which dipped against the euro.

Other precious metals tracked gold higher. September silver closed at $12.82, up 6.3 cents an ounce.

Copper prices gained as the London Metal Exchange released a large outflow of inventory and as workers at a major Chilean mine went on strike. Nymex September copper gained 3.5 cents to $3.6295 a pound.

In the energy market, oil sank under the pressure of hopes for a corresponding decline in demand for crude from the Whiting, Ind., refinery. The unit, closed for maintenance, processes about 250,000 barrels of crude daily. Crude for August delivery shed 62 cents to close at $72.19 a barrel on the Nymex..

Brent crude hit an 11-month high of $76.34 a barrel on ICE Futures in London.

Gasoline futures surged 3.5 cents to finish at $2.3446 a gallon.

December corn inched down 1.6 cents to settle at $3.502 a bushel on the Chicago Board of Trade. Wheat for September also pulled back 10.4 cents to $5.994 a bushel.

Meanwhile, soybean prices surged over the $9 mark for the first time since 2004. November soybeans added 6 cents to close at $9.02 a bushel.