Gold indicated slightly higher in London; market awaits US data

London (Platts)--1Sep2006

Gold was indicated slightly higher in thin early morning London trade
Friday. Spot bullion was bid at $625.45/oz at 0752 GMT Friday, up slightly
from the late New York spot price of $625.00/oz and $1.95 higher than its
Thursday afternoon fix.
Paul Merrick, director of commodities at Dresdner Kleinwort Wasserstein
in London, told Platts that there had been "very little activity" in Friday
morning trade as market players were sitting on their hands ahead of the
non-farm payroll figures due out in the US later in the day.
"We have also seen the euro weakening, so there may be some of the view
that the figure will be bullish for the US," he said. Merrick said market
participants were "reluctant to push gold through $630/oz," since the last
time it broke through this level, "gold lost about $23."
He noted however that silver was outperforming gold at present and was in
sight of $13/oz. He said silver strong performance could be attributed to the
ETF fund having just broken through 100 million oz----"an important
psychological level."
Silver was bid at $12.85/oz around 0800 GMT Friday morning, up $0.25 from
its Thursday fix.
Meanwhile, in the currency markets, the euro was bid at $1.2806 at 0755
GMT up slightly from $1.2800 at 1530 GMT Thursday. The yen was indicated at
Yen 117.32 on Friday morning down from Yen 117.30 on Thursday afternoon.
--Michelle de Klerk, michelle_deklerk@platts.com

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