PRECIOUS METALS: NY Gold Seen Down $2, Silver Down 2 Cents

DOW JONES NEWSWIRES

December gold futures are expected to open floor trading in New York around $2 an ounce lower Monday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. December silver is expected to be down 2 cents an ounce.

Spot gold initially rose overnight when bargain hunting emerged in Asia amid ideas that the liquidation sell-off late Friday was overdone and the financial markets are still in a confidence crisis. The metal has since given up much of the gains on a day when global stock bourses soared after monetary authorities around the world announced measures to restore confidence in the global financial system.

The December S&P 500 futures are up 42.90 points to 934.90 in overnight screen trading ahead of the open on Wall Street.

At 7:58 a.m. EDT, spot gold was trading up $6.15 to $854.80.

The euro is up to $1.3627 from $1.3413 late Friday afternoon. November crude oil is up $3.61 to $81.31 a barrel.

No major U.S. economic reports are scheduled for release Monday on the Columbus Day holiday.

Reports this week include the fiscal 2008 budget balance on Tuesday, then a full slate Wednesday that includes the Producer Price Index, retail sales, New York Fed manufacturing survey and Federal Reserve's Beige Book. Thursday brings weekly jobless claims, the Consumer Price Index, industrial production and Philadelphia Fed manufacturing index, followed by housing starts and University of Michigan consumer-sentiment index on Friday.

In New York on Friday, gold closed lower in a highly volatile session Friday in which they first climbed nearly $50 an ounce in the overnight session as global equities sold off, then sold off on long liquidation with other commodities. The December contract settled with a loss of $27.50 to $859 an ounce. December silver closed $1.275 lower at $10.60 an ounce.

Comex gold warehouse stocks were down 1,401 ounces at 8,598,189 ounces Friday, while silver stocks were down 720,921 ounces at 134,162,116 ounces.

-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com

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(END) Dow Jones Newswires

October 13, 2008 08:03 ET (12:03 GMT)


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