(The article "PRECIOUS METALS: Encouraging Manufacturing
Data Pressure
Gold," published at 3:09 p.m. ET, referred to an incorrect
unit of measurement
for gold in the second paragraph).
NEW YORK (Dow Jones)--Gold futures finished slightly lower Wednesday as
stronger-than-anticipated manufacturing data dulled some of
the safe-haven
shine that had earlier sent the metal to fresh two-month
highs.
The most actively traded gold contract, for December delivery, fell
$2.20, or
0.2%, to settle at $1,248.10 an ounce on the Comex division
of the New York
Mercantile Exchange.
"Triple digit stock gains dampened enthusiasm for gold," said George Gero,
vice president with RBC
Capital Markets Global Futures in New York.
Shortly after gold closed, the Dow Jones Industrial Average was up 239.99
points, or 2.4%, at 10254.71 after data showed the U.S.
manufacturing sector
unexpectedly rebounded in August. The Institute for Supply
Management's
purchasing managers' index rose to 56.3, from 55.5 in July,
compared with
economists' forecasts for an August reading of 52.5.
Readings above 50 indicate
expanding activity.
"The (stock) market's getting some footing under it," said Ira Epstein,
director of the Ira Epstein division of the Linn Group in
Chicago. "That
typically causes some selling in gold."
Gold is often considered a safe-haven investment because it isn't as
linked
to economic cycles as more industrial materials like copper
and oil, or
equities that represent a proxy for the economy. That
means the metal's price
can fall when investors become less worried about the wider
economic situation.
Earlier in the day, December gold reached an intraday high of $1,256.60,
its
strongest point since June 28, after a national employment
report showed that
private-sector jobs in the U.S. fell by 10,000 last month.
Economists had
expected a gain of 17,000.
Even then, the metal's rise was kept in check on stock market strength
after
encouraging manufacturing data from China, better-than
expected growth in
Australia and euro-zone manufacturing data that remain in
expansionary
territory.
"Increased risk appetite has slowed the advance in precious metals
prices,"
said Standard Bank analyst Leon Westgate.
Meanwhile, the International Monetary Fund said Wednesday it sold about
16.8
metric tons of gold in July, as its policy of gradually
releasing gold onto the
market continued. The sales compared to about 17.7 metric
tons in June and 15.2
the month before, according to the IMF's monthly report on
gold holdings.
The IMF has been steadily selling a portion of its holdings in the market
since early in the year, coordinating the effort with
regularly scheduled sales
by European central
banks in order to avoid market disruptions.
Silver prices also moved lower in line with gold Wednesday. December
metal
dropped 0.2%.
The platinum group metals--which are primarily used in the manufacture of
automotive catalytic converters--gained on the strong
manufacturing data and a
sharply weaker U.S. dollar. Nymex October platinum rose 0.8%
and December
palladium gained 3.6%. Palladium's smaller market can
exacerbate volatility.
Settlements (ranges include open-outcry and electronic
trading):
London PM Gold Fix: $1,246.50; previous PM $1,246.00
Spot gold at 1:37 p.m. ET: $1,244.70, down $3.12; Range:
$1,242.60-$1,254.74
Dec gold $1,248.10, down $2.20; Range $1,244.10-$1,256.60
Dec silver $19.393, down 3.9 cents; Range $19.320-$19.535
Oct platinum $1,535.70, up $12.20; Range $1,518.80-$1,541.20
Dec palladium $520.10, up $18.25; Range $500.55-$529.50
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139;
matt.whittaker@dowjones.com
(Tom Barkley in Washington contributed to this report.)
(END) Dow Jones Newswires
09-01-10 1803ET
Copyright (c) 2010 Dow Jones & Company, Inc.
18:03 090110
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