gold news from the wires..

  1. 2,154 Posts.
    GOLD 362.25/3.00 * 360.00 * 370.00 * 40 * 369.00 * 360.80
    SILVER 4.57/4.59 * 4.50 * 4.80 * 27 * 4.72 * 4.78
    PLAT 678/683 * 675.00 * 700.00 * 67 * 679.95 * 643.72
    ----------------- VIEWS FROM THE MARKET - Feb 12 --------------
    LONDON, Feb 12 (Reuters) - Gold is seen entering a period of
    consolidation in the next few days, hemmed in between $360 and
    $370 an ounce as the market pauses after wild swings, traders
    said on Wednesday.
    The market looked supported on the downside by geopolitical
    worries but faced resistance on the upside from profit-taking.

    GOLD - Prices slipped in early European trade as
    profit-taking gripped the market, which was exacerbated by heavy
    selling in Asia.
    The outlook for the next few days was hard to predict.
    Geopolitical tensions and sluggish equities signalled higher
    prices, but the market was in danger of becoming overbought.
    "The picture for gold looks very difficult at the moment as
    war in Iraq looks imminent and should be a springboard for
    prices, but anything towards $370 attracts profit-taking," a
    trader said.
    "Friday is the real key day for gold when the U.N. weapons
    inspectors next report to the (Security) Council."
    Fundamentally, physical demand was low in Europe, especially
    in the jewellery sector, traders said.
    The dollar would also shape gold's direction,
    although that factor was seen as relatively neutral on
    At 0855 GMT, spot gold was quoted at $361/62 an
    ounce, down from $362.25/3.00 at the New York close on Tuesday.
    In the United States on Tuesday war jitters over Iraq
    stopped another slide in prices, as did Federal Reseve Chairman
    Alan Greenspan's sobering outlook on the economy against a
    backdrop of international political tension.
    "A further period of consolidation and profit-taking looks
    likely in the days to come," UBS Warburg said in a report.
    "Should spot gold remain around current levels, or indeed
    fall further, we would expect implied volatility to fall over
    the coming days," it said.

    SILVER - Silver was seen tracking gold.
    At 0855 GMT, spot silver was quoted at $4.56/4.58 an
    ounce from $4.57/59 at the New York close on Tuesday.
    "Silver has failed to hold its risk aversion gains and while
    the metal will continue to takes its direction from gold,
    further underperformance looks likely," UBS Warburg said.
    "Silver should further benefit from the weaker dollar, but
    since silver's applications are largely industrial the metal
    will continue to be hit by slowing economic activity," it said.

    PLATINUM - World number two platinum producer Impala
    saw the market firmly underpinned by continued
    fundamental demand, and said its overall outlook for the metal
    was positive on sound fundamentals.
    But it cautioned that the continued high price could cut
    into jewellery consumption, particularly in China, where the
    market grew 20 percent last year.
    The metal was quoted at $686/691 an ounce, up from $678/683
    at the New York close.
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