US gold prices climb higher on worries of tropical storm damage

Washington (Platts)--17Oct2005

US gold prices jumped higher Monday morning in light trading on worries
over damage to US energy facilities from tropical storm Wilma, which appears
to be approaching the US Gulf Coast, an area already damaged by two
hurricanes. Gold for December delivery, the most actively traded contract,
gained $5/oz by 10:15am EDT (1415 GMT) to reach $476.80/oz. The December
silver contract gained just over 1cts/oz to reach $7.875/oz. "
     Gold's upswing is due largely to higher energy prices, stemming from
concerns over possible damage to US refineries by Wilma, which is still
classified as a tropical storm. "We've had Wilma rapidly approaching the Gulf
of Mexico and again, it's just raising concerns of potential damage to the oil
producing facilities in that region, which is raising further concerns about
inflation," one analyst said. 
      NYMEX platinum and palladium futures also jumped higher Monday morning
after declining in the latter part of last week. Platinum for January 2006
delivery, the most actively traded contract, rose $11.20/oz by 10:15am EDT to
$938.50 while December palladium jumped $4.30 to $214.50/oz.  "Palladium is, I
think a little bit of short covering," the analyst said, pointing to the
latest Commitment of Traders report released late Friday. "I think there has
also been some substitution from the auto manufacturers as well as jewelry
demand from China in particular," he said.

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