960424

Gold, silver settle

barely weaker

NEW YORK: Comex gold settled barely weaker in dull trade, on Tuesday drifting lower near the close after failing to draw a sustained lift from a rally in crude oil prices, traders said.

They said stale speculative long positions still appeared to be weighing on the market, with sideways trade seen continuing through Friday's over-the-counter options expiry.

June gold settled $0.20 weaker at $393.40 an ounce, traded from $394.50 to $393.30, a range set early. Volume was light at an estimated 16,000 lots, down from Monday's 20,789.

Dealers quoted bullion at $391.30/$391.60.

Crude oil prices rallied strongly today, after new snags emerged Monday night in U.N. talks on limited Iraqi oil sales. The closely watched KR-CRB index of commodity futures eased, however, due to a spot-month expiry in the crude oil market and pullbacks in coffee and other commodities that rose sharply Monday. The KR-CRB set new eight-year highs Monday.

Gold continued to show little sustained response to the recent climb in commodity prices, however, with resistance at $394 to $395 in the June futures thwarting attempts at the upside.

Option volatilities slid today, traders said, as gold prices appeared to be settling into a near-term range after steadying from last week's declines. COMEX silver settles barely weaker

SILVER

NEW YORK: Comex silver settled barely weaker, as the precious metals drifted lower late in the session after an early probe of the upside ran into resistance, traders said.

The markets drew little support from today's strong rally in crude oil prices, after new snags emerged Monday night in U.N. talks on limited Iraqi oil sales.

The closely watched KR-CRB index of commodity futures eased, however, due to a spot-month expiry in the crude oil market and pullbacks in coffee and other commodities that rose sharply Monday. The KR-CRB set new eight-year highs Monday.

May silver settled 1.0 cent lower at $5.315 an ounce, near the bottom of the session's narrow $5.355 to $5.31 range. July was off 0.8 at $5.367, traded from $5.405 to $5.36.

Volume was estimated at 29,000 lots, including 6,075 switches as players continued rolling positions forward into the July contract from May, which enters notice period next week.

COMEX silver warehouse stocks Tuesday eased by 592,995 ounces to 142,023,780, according to data released after the close. NYMEX platinum settles fractionally weaker

PLATINUM

NYMEX platinum settled fractionally weaker, as the precious metals drifted lower in late trade after early probes of the upside met with resistance.

July platinum ended $0.30 weaker at $407.70 an ounce, traded from $409.50 to $407.00, a range set early. Volume was light at an estimated 1,602 lots, down from Monday's official turnover of 2,716.

June palladium was up $0.35 at $136.20 an ounce.-Reuter