Gold Closes Lower On Oil Price Decline

Market Update Analysis:

Author: Ivaylo Dagnev
123jump.com
Last Update: 5:13 AM EDT July 11 2006

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The loosening geopolitical pressure and falling oil prices are forcing the yellow metal down, which will likely remain volatile in the near term due to the upcoming Group of Eight summit in St. Petersburg, Russia late next week and the North Korea talks. The volatility is expected to calm down and the metal is mainly to trade sideways into the summer.

5:00AM Stronger dollar and weaker oil prices push gold futures down.
At the NYME, the most-traded August gold ended $8.70 lower at $626.10 a troy ounce. The contract got as low as $621.90. September silver closed at $11.110 an ounce, down 29.5 cents. October platinum finished $13 lower at $1,230.70 an ounce while September palladium settled down $5.45 at $323.70 an ounce. The September copper contract advanced 3.50 cents to end at $3.5825 per pound.

The front-month August crude-oil contract in New York, which set a record high of $75.78 on Friday, dropped 48 cents to close at $73.61 a barrel. August natural gas gained 8.5 cents to end at $5.608 a million British thermal units. On the New York Board of Trade, July Arabica coffee futures settled up 0.70 cent at 99.10 cents a pound. Futures on raw sugar in foreign ports for October ended down 0.41 cent at 16.46 cents a pound.

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