Gold Declines on Profit Booking

Market Update Analysis:

Gold Declines on Profit-Booking

Author: Ivaylo Dagnev
123jump.com
Last Update: 5:20 AM EST November 29 2006

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While the dollar has been weaker, some selling of gold may have begun as the U.S. currency showed at least some signs of stabilizing after morning comments from the Treasury Secretary. A strong dollar is clearly in the interest of the US. The complexion of Federal Reserve Chairman Ben Bernanke statements may have contributed to the tendency to take profits.The Fed chief did not appear to be overly worried about the slowdown in the economy.

5:00AM Gold futures fell on Tuesday due to profit-taking, silver gained.
February gold lost $3.40 to $643.70 a troy ounce on the NYME. March silver settled up 12.6 cents to $13.812 an ounce. January platinum gained $3.20 to close at $1,150.60 an ounce. March palladium settled $1.65 lower to $328.65 an ounce. Most active March copper moved 4.55 cents lower at $3.17 per pound.

Crude oil futures rallied for a second straight session and briefly topped $61.00 a barrel Tuesday on forecasts of colder weather and uncertainty ahead of an OPEC meeting. The January crude contract on the NYME advanced 67 cents to end at $60.99 a barrel. December heating oil settled up 2.31 cents at $1.7283 a gallon. December unleaded gasoline added 3.29 cents to finish at $1.6266 a gallon. December natural gas rose 32.0 cents to close at $8.318 a million British thermal units.

On the New York Board of Trade, December Arabica coffee futures ended 2.35 cents higher at $1.2035 a pound. March futures of raw sugar in foreign ports settled up 0.18 cent at 11.99 cents a pound.

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