NEW YORK (MarketWatch) -- Gold futures rallied Monday, breaking a five-session losing streak, as physical demand, technical buying and rising crude-oil prices boosted the precious metal.
Gold for August delivery closed up $8.70 at $659.0 an ounce on the New York Mercantile Exchange.
"Gold prices managed a climb back from the abyss," said Jon Nadler, metals analyst at Kitco Bullion Dealers. "Sentiment continues to be skittish, as conditions are not there for a full reversal; however, oversold indicators gave some brave souls a chance to make a buck playing the long side today."
James Moore, metals analyst at TheBullionDesk.com, said that "bargain hunting and good physical demand has lifted gold."
On Friday, gold futures tumbled in a broad commodities sell-off, as the dollar rallied against other major currencies, damping investor appetite for metals. The metal closed down $14.90 at $650.30 an ounce, logging a loss of $26.60 on the week.
Silver and copper futures plunged about 3%, while energy futures also fell across the board, with crude oil tumbling 3%.
"Weakness was seen across the metals sector Friday with the precious metals bearing the brunt as fund players cut their positions in search of better returns from equity and treasury products," Moore said.
"The week ahead is likely to be pivotal for mid-term direction, particularly with the market heading towards the summer months when traditionally liquidity thins and physical demand slows," Moore said.
Monday, June 11, 2007
Tehran plans five refineries in Asia to boost energy ties
Kuala Lumpur: Iran plans to tie up with Asian companies to build five refineries in the region as part of its efforts to boost energy cooperation, Iran's oil minister said yesterday.
With China and India expected to become giant oil consumers in the next 20 years, the focus in the oil market has shifted from the west to Asia, said Iranian oil minister Kazem Vaziri Hamaneh.
Iran is finalising five Asian joint-venture refinery projects in China, Indonesia, Malaysia, Singapore as well as Syria, he said. Together, they would have a total capacity of 1.1 million barrels a day, he told reporters on the sidelines of an oil-and-gas conference here.
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"We are supposed to be the partner in these refineries and also to provide the crude oil for those refineries," he said. He didn't give details on the investment involved nor say when the projects will come on stream.
The projects, which will be undertaken by the National Iranian Refining and Distribution Co., mark Iran's efforts to expand in Asia, which currently accounts for about 40 per cent of Iran's exports, said oil ministry official Javad Yarjani.
With China and India expected to become giant oil consumers in the next 20 years, the focus in the oil market has shifted from the west to Asia, said Iranian oil minister Kazem Vaziri Hamaneh.
Iran is finalising five Asian joint-venture refinery projects in China, Indonesia, Malaysia, Singapore as well as Syria, he said. Together, they would have a total capacity of 1.1 million barrels a day, he told reporters on the sidelines of an oil-and-gas conference here.
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"We are supposed to be the partner in these refineries and also to provide the crude oil for those refineries," he said. He didn't give details on the investment involved nor say when the projects will come on stream.
The projects, which will be undertaken by the National Iranian Refining and Distribution Co., mark Iran's efforts to expand in Asia, which currently accounts for about 40 per cent of Iran's exports, said oil ministry official Javad Yarjani.
Dubai and Abu Dhabi stock markets head southwards
Abu Dhabi: UAE stocks suffered negative performance yesterday as Dubai's benchmark index fell by 1.37 per cent to 4,402.14, while Abu Dhabi's general index retreated by one per cent to 3,603.82.
The value of traded shares declined sharply in Dubai, allowing for more funds to flow towards Abu Dhabi Securities Market (ADSM) where Dh1.24 billion worth of shares changed hands, in contrast with Dh572.6 million in Dubai Financial Market (DFM).
In Abu Dhabi, the strong rally continued on the new building material company, Arkan, with more than Dh387 million worth of its shares traded, the company advanced by 1.14 per cent to Dh1.78.
The banking sector was the worst performer as the sub-index lost 1.6 per cent on account of the sharp decline of the National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, and Abu Dhabi Islamic Bank.
The value of traded shares declined sharply in Dubai, allowing for more funds to flow towards Abu Dhabi Securities Market (ADSM) where Dh1.24 billion worth of shares changed hands, in contrast with Dh572.6 million in Dubai Financial Market (DFM).
In Abu Dhabi, the strong rally continued on the new building material company, Arkan, with more than Dh387 million worth of its shares traded, the company advanced by 1.14 per cent to Dh1.78.
The banking sector was the worst performer as the sub-index lost 1.6 per cent on account of the sharp decline of the National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, and Abu Dhabi Islamic Bank.
FXStreet.com
Short covering and bargain hunting on Monday enabled gold and silver futuresto recoup a portion of their heavy sell-offs from late last week. August gold rose $8.70 to $659 an ounce on the Comex division of the New YorkMercantile Exchange. As pit trade was closing, the August contract at theChicago Board of Trade was up $8.20 to $658.80. Comex July silver rose 23.5 cents to $13.275. As it was closing, CBOT Julysilver was up 25.6 cents to $13.283. This comes after Comex August gold fell $14.90 Friday and July silver fell 44cents. "In gold, it was short covering and bargain hunting," said one trader. "Wehad two sharp sell-offs on Thursday and Friday. Gold came right down to supportareas that were established in early March." August gold has bounced from a three-month low of $647.80 on Friday that, fornow at least, roughly forms a double-bottom with the $647.20 low from March 5.During the course of the day, several traders said last week's pullbackresulted in some physical demand re-emerging in India and other Asian nations.One added the stronger tone in crude oil - with July crude up roughly $1 abarrel late in the gold session - also underpinned the metals. July silver bounced with gold, as base and precious metals generally tendedto rise together, the trader said. "They're all moving in tandem. There was fairly well-rounded liquidation lastweek. So you're seeing fairly rounded short covering and bargain hunting." July silver had bottomed Friday at $12.97, holding in a band of support thetrader put from roughly $12.70 to $13. "We've been in a range for months on end, and we're just at the lower end ofit," the trader said. He puts the metal in a wide band of roughly $12.50 to$14.50 from the last several months.
EUROPE MARKETS: Europe Back On The Rise Amid Higher Gold Prices, Bid Chatter
European stocks were on the rise Monday after sharp losses last week, as investors bought shares in mining firms and also snapped up shares in possible acquisition targets, including U.K. gas company Centrica.
The pan-European Dow Jones Stoxx 600 indexadded 0.8% to stand at 388.13 as investors attempted to recoup some of last week's losses by buying resource shares, auto firms and industrial stocks.
Miners led the gains, with Rio Tinto (RTP) shares up 1.3% and Vedanta Resourcesposting gains of 1.6% as gold prices broke a five-session losing streak.
The previous week, investors in Europe and around the world fretted about global interest-rate levels, sparking a sell-off in both equity and bond markets. The Stoxx 600 index lost about 4% in the week.
Around the region on Monday, the German DAX Xetra 30 indexgained 1.1% at 7, 478.90, the French CAC-40 indexrose 0.8% at 5,930.82 and the U.K.'s FTSE 100 indexadvanced 0.6% at 6,548.80.
Strategists at J.P. Morgan and Lehman Brothers also gave equity investors some reassurance on Monday, sticking with their prior recommendations for global stock markets.
J.P. Morgan's Abhijit Chakrabortti said that he believes that the highest amount of risk lies with interest-rate levels rather than economic growth, meaning that he won't be selling equities to buy bonds.
Chakrabortti said that he remains neutral on equities due to a lack of traditional bear-market signals -- significant overvaluation and/or sustained high inflation.
The pan-European Dow Jones Stoxx 600 indexadded 0.8% to stand at 388.13 as investors attempted to recoup some of last week's losses by buying resource shares, auto firms and industrial stocks.
Miners led the gains, with Rio Tinto (RTP) shares up 1.3% and Vedanta Resourcesposting gains of 1.6% as gold prices broke a five-session losing streak.
The previous week, investors in Europe and around the world fretted about global interest-rate levels, sparking a sell-off in both equity and bond markets. The Stoxx 600 index lost about 4% in the week.
Around the region on Monday, the German DAX Xetra 30 indexgained 1.1% at 7, 478.90, the French CAC-40 indexrose 0.8% at 5,930.82 and the U.K.'s FTSE 100 indexadvanced 0.6% at 6,548.80.
Strategists at J.P. Morgan and Lehman Brothers also gave equity investors some reassurance on Monday, sticking with their prior recommendations for global stock markets.
J.P. Morgan's Abhijit Chakrabortti said that he believes that the highest amount of risk lies with interest-rate levels rather than economic growth, meaning that he won't be selling equities to buy bonds.
Chakrabortti said that he remains neutral on equities due to a lack of traditional bear-market signals -- significant overvaluation and/or sustained high inflation.
US gold ends higher as bargain hunters seek lows
NEW YORK, June 11 (Reuters) - U.S. gold futures rose on Monday, closing more than 1 percent higher as investors sought bargains after last week's steep losses, traders said.
"I think the move in gold was mostly technical. We came very close to that March low on Friday and then the selling stopped. Some people were doing some bargain hunting today," said one precious metals trader.
Most-active gold futures for August on the COMEX division of the New York Mercantile Exchange finished $8.70 an ounce higher at $659.0 an ounce. It set a session range from $653.80 to $659.20 an ounce.
On Friday, gold touched its lowest level since March 5.
"I think the move in gold was mostly technical. We came very close to that March low on Friday and then the selling stopped. Some people were doing some bargain hunting today," said one precious metals trader.
Most-active gold futures for August
On Friday, gold touched its lowest level since March 5.
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