Metals - Gold edges lower as market consolidates, dollar recovers |
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Wed, 24 Jan 2007 15:49
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LONDON (AFX) - Gold edged lower as the market consolidated after climbing yesterday to its highest levels this year, and as the dollar recovered slightly from yesterday's large sell-off.At 2.18 pm, spot gold, which earlier hit a low of 640.40 usd an ounce, was quoted at 641.35 usd, up from the 646.50 usd level seen in late New York trades yesterday.'After getting a boost (yesterday) from both major fundamental drivers (oil and the dollar), gold might digest gains today,' said Dresdner Bank analyst Peter Fertig.The dollar has recovered slightly against the euro after falling yesterday to two and a half week lows in the wake of hawkish comments from European Central Bank officials.The comments sparked speculation about further interest rate hikes for the euro. This put the dollar under heavy pressure and analysts say while it has recovered slightly today, it remains weak overall.'With the dollar running into pressure and oil prices stabilising above 50 usd the outlook for gold remains positive,' said TheBullionDesk.com analyst James Moore.He added, however, that gold would have to break technical resistance at 648-656 usd before moving higher.For now, its gains are being capped, with traders reluctant to take positions ahead of the release of US oil inventory data, which could pressure oil prices if it reveals stronger than expected gains in energy stocks.'Metals traders should be wary of this release following the sharp sell-off last week (after) large, unexpected stock builds,' said UBS Investment Bank analyst John Reade.He said he remains positive on the precious metals overall.'We view the past few days' moves in precious metals as very positive. We will readdress out short term forecasts for all precious metals on Thursday,' he said.In other precious metals, silver was down at 13.10 usd an ounce against 13.21 usd in late New York trades, platinum was down at 1,164.00 usd against 1,173.00 usd, while palladium was up at 344.50 usd against 350.00 usd.maytaal.angel@afxnews.comma/amCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Precious metals at record high prices 