Re: NY gold ends higher on inflation fear, weak dollar
in response to
by
posted on
May 05, 2009 04:04AM
NEW YORK, May 4 (Reuters) - New York gold futures rose
nearly 2 percent to a one-week high on Monday, finishing above
$900 an ounce on a combination of weaker dollar, renewed
inflation worries and signs of rising physical demand from top
bullion consumer India.
For the latest detailed report, click on [GOL/].
GOLD
* Gold for June delivery GCM9 settled up $14.00, or 1.6 percent, to $902.20 an ounce on the COMEX division of the New York Mercantile Exchange.
* Ranged from $885.60 to $908.30.
* Rally in gold futures triggered by a lower dollar against the euro and as investors added long positions following last week's decline - traders.
* Inflation concerns, weak dollar and optimistic view toward commodities are driving gold higher - Bill O'Neill, managing partner at LOGIC Advisors.
* A spate of positive U.S. economic data rekindled inflation worries, and that commodities funds showed an increased level of interest in the gold market - O'Neill.
* Pending sales of previously owned homes rose for a second straight month in March, while construction spending edged higher, suggesting a moderation in the housing slump. [ID:nN04392840]
* Uncertainties ahead of stress test results on U.S. banks boosted safe-haven buying of gold - traders.
* Gold mining stocks, measured by the Gold Bugs index .HUI, also jumped more than 5 percent on the back of a Wall Street rally.
* Broad S&P 500 index .SPX rose above the psychologically important 900 level for the first time since January.
* India imported about 30 tonnes of gold in April, up 25 percent from the same month last year, helped by a drop in prices and festival demand - trade body.
* Volume remained thin as London's bullion market was shut for a bank holiday.
* Noncommercial net long positions in gold futures increased slightly, while open interest rose 1 percent in the week up to April 28 - CFTC report. [ID:nN01338621]
* Gold/oil ratio inched up to 16.52 from 16.66 the previous session.
* Spot gold <XAU=> traded at $901.85 an ounce at 2:22 p.m. EDT (1822 GMT), up 1.8 percent from its late Friday quote in New York.
SILVER
* COMEX July silver SIN9 ended up 61.30 cents, or 4.9 percent, at $13.113 an ounce on the back of gold's rally.
* Ranged from $12.440 to $13.155.
* Spot silver <XAG=> was at $13.06 an ounce, up 4.8 percent from its previous finish.