Precious metals prices decline on New York exchanges

New York (Platts)--15Dec2006

Gold and other precious metals are once again in a selloff mode on the
New York futures exchanges, as further profit taking takes hold. With the
dollar holding on to its recent gains, gold is expected to remain under
pressure, according to trade sources. Trading has been hectic in the gold and
silver pits, but the PGMs have been quiet.

The nearby February gold futures contract on the COMEX fell $3.40 to
$627.50/oz at 10:23 am EST, down from the day's high of $633.20/oz. Gold
opened with solid overnight gains but encountered profit taking as it
attempted to move higher. COMEX March 2007 silver futures contract plunged 20
cents to $13.75/oz when it last traded at 10:25 am.

On the NYMEX, things are not much different. Platinum is now heading
south after firming up in recent days. Basis the January 2007 contract,
platinum fell $4.70 to $1,108/oz at 10:05 am. However, the April contract,
which will soon become the active nearby traded contract, gained $2.30 to
reach $1,122/oz. Traders have started switching their positions out of the
January contract into the April contract and as a result, open interest in the
April contract has declined sharply.

NYMEX March palladium fell $3.95 to $327.10/oz to remain in its trading
range. There has been considerable resistance in the $333-335/oz area.

--Ovid Abrams; ovid_abrams@platts.com

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