Good Morning...Gold Futures Gain...Gold futures gain on fresh dollar retreat
By Polya Lesova, MarketWatch
Last Update: 8:54 AM ET Jul 24, 2007
NEW YORK (MarketWatch) -- Gold futures gained ground early Tuesday as the dollar fell against other major currencies, boosting demand for the precious metal.
"Sentiment for gold remains bullish for the moment," said James Moore, analyst at TheBullionDesk.com.
Gold for August delivery rose $5.20 to stand at $686.70 an ounce on the New York Mercantile Exchange. Other metals prices were mostly higher.
On Monday, gold futures fell $3.20 an ounce. Read more.
"Fueled by the now familiar decline of the U.S. dollar ... gold regained its composure and rose overnight as well as into the opening of the New York session," said Jon Nadler, analyst at Kitco Bullion Dealers, in a morning note.
Nadler added that gold traders now have to contend with "fast-declining" prices for crude oil as well.
On the currency markets, the greenback fell against other major currencies. It touched the latest in a string of new 26-year lows against the British pound.
And in energy trading, crude futures extended their prior-session losses, off $1.14, or 1.5%, to $73.76 a barrel in electronic trading.
"The dollar will remain the key driving force in the coming sessions although traders will also keep an eye on oil prices, with signs of profit-taking potentially easing inflationary concerns," Moore told clients in a market update.
Metals traders might also move in to take profits on gold in light of the metal's performance over the last several weeks, according to Moore.
As for the other metals, September silver rose 18 cents at $13.510 an ounce, October platinum addd $2.10 at $1,344 an ounce and September copper gained 1.85 cents at $3.6750 a pound. and September palladium fell to $371.20 an ounce, down $2.30.
Gold warehouse inventories were unchanged at 6.95 million troy ounces as of late Monday, according to Nymex data. Silver supplies dropped to 131.5 million troy ounces, down by 629,174 troy ounces, while copper supplies stood at 20,814 short tons, up 135 short tons.
Polya Lesova is a MarketWatch reporter based in New York.
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