DJ PRECIOUS METALS: Gold Recovers On Missing-American Report

Gold futures bounced from liquidation pressure late Monday to post a gain,with traders citing comments from the Bush administration that it was lookinginto reports of an American said to be missing in Iran. June gold rose $2.50 to $671.50 an ounce on the Comex division of the NewYork Mercantile Exchange. As pit trade was closing, the June contract at theChicago Board of Trade was up $2.60 to $671.70. Comex May silver fell 10 cents to $13.35 but settled up 33 cents from its$13.02 low. Shortly after it closed, CBOT May silver was down 8.2 cents to$13.367. The metals were softer much of the day. Generally, analysts blamed this onliquidation of long positions that had been built up ahead of the weekend incase the U.K.-Iran situation had deteriorated. Instead, there was a perceptionof improvement in the situation when Iran radio indicated the country wouldstop airing alleged confessions of U.K. sailors due to "positive change" in theU.K. negotiating stance. However, gold and silver bounced into the close. Bernard Hunter, director of precious metals at Scotia Mocatta, attributedthis to reports saying that the U.S. government is looking into a report ofU.S. citizen that reportedly disappeared in Iran some time ago while onbusiness.