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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.
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