Precious metals rebound sharply in New York

New York (Platts)--22Sep2006

With the selling pressure eased, gold and silver prices took a sharp
upturn on the COMEX Friday morning and platinum and palladium followed.
Traders believe the markets were over-sold during the most recent liquidation
and that set the stage for fresh buying opportunities.

The nearby December gold futures contract on the COMEX rebounded $6.50 to
reach $594.70/oz at 10:06am [1406 GMT] and December silver rose by 9.5 cents
to $11.34/oz.

"Some guys were short last week and at the beginning of this week, so
they have been covering their positions," said a trader. "Gold is also firming
up on the weaker dollar and the oil market."

Platinum, which had faced strong selling pressure in recent days, has
rebounded after the selling eased, with the nearby October contract gaining
$11.50 over Thursday's settlement to reach $1,151/oz when it last traded at
10:00am.

Palladium, which has been the more volatile of the two PGMs, has
experienced the biggest gain both in absolute numbers and relative terms, as
fund buying resumed. December palladium rose $14 to $323/oz at 10:02am. This
is a 5% gain on Thursday's settlement.

--Ovid Abrams, ovid_abrams@platts.com

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