US precious metals jump as dollar continues to weaken

US precious metals jump as dollar continues to weaken

Washington (Platts)--30Jun2006

US precious metals skyrocketed Friday morning as the US dollar continued
to deteriorate against the euro and other major currencies following the US
Federal Reserve's statement Thursday that future rate hikes will depend on
economic data.

Gold for August delivery, the most actively traded gold contract on the
COMEX, rose $26.10/oz to $615/oz by 10:10 am EDT after opening more than $13
higher at $602. September silver, the most actively traded silver contract,
gained 0.620 cents/oz to reach $11.040/oz.

Gold triggered buy stops once it broke through resistance near $602-603,
its 100-day moving average, analysts said. In addition, gold is receiving
support from the declining dollar and continued geopolitical tensions with
Iran and North Korea.

"Oil has held at $73/barrel for a little while now, and the dollar has
been under some pretty strong pressure for almost 24 hours," one analyst said.
Traders are also trying to close out their books ahead of quarter end and the
long Independence Day holiday in the US, he added.

NYMEX platinum and palladium futures also surged higher, with platinum
for October delivery, gained $42.30/oz by 10:10 am EDT to reach $1,243/mt,
solidly above the $1,200 resistance level. September palladium rose $5.60/oz
to reach $319/oz, still within its recent trading range.

In currency trading, the dollar fell to $1.2760 against the euro by 10:10
am EDT.

--Nick Jonson, nick_jonson@platts.com

For more news, request a free trial to Platts Metals Week at
http://plattsmetals.platts.com or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=28_37&products_id=68

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.