Metals, Energy Prices Slide After Week of Strong Gains As Investors Cash in Some Profits
By LAUREN VILLAGRAN, The Associated Press Monday, July 23, 2007NEW YORK - Gold prices retreated Monday in tandem with a rising U.S. dollar, as some traders chose to pocket profits after last week's run-up.
In other commodities markets, energy and industrial metals prices also backtracked, while agriculture futures traded in a mixed range.
The precious metals prices market notched losses in gold, silver and platinum.
Tom Pawlicki, an analyst with Man Financial Global Research in Chicago, attributed gold's decline to profit-taking after the metal's price rose above key resistance levels last week. When a commodity reaches a certain price level considered a key breaking point, it can trigger mass buying or selling of a commodity due to the widespread use of computer-programmed trading.
The drop follows a more than $17 jump in prices last week amid substantial declines in the U.S. dollar. Although the dollar logged a new low Monday in overnight trading against the euro, the U.S. currency bounced back, if slightly. The 13-nation euro bought a record $1.3846, briefly edging over its previous peak of $1.3843.
Gold prices tend to be sensitive to the dollar's direction, as investors shift funds to gold when the dollar weakens or return to the currency amid signs of strength.
August gold fell $1.90 to $682.80 an ounce on the New York Mercantile Exchange, while September silver slipped 3.8 cents to $13.365 an ounce.
Overseas, industrial metals largely weakened on the London Metal Exchange, with nickel dropping more than 4 percent and lead pulling back slightly after a week of strong price gains. Copper prices also dipped amid bearish supply reports.
Nickel and copper stocks held by the LME -- considered a gauge of world supply and demand -- increased. Meanwhile, Barclays Capital reported that Chinese trade data showed month-over-month declines in Chinese imports of copper cathodes and nickel concentrates in June.
Nymex copper dipped 1.8 cents to $3.6875 a pound.
Elsewhere on the Nymex, energy prices receded as crude oil gave up some of its gains of last week.
OPEC's research director Hasan Qabazard on Monday told Dow Jones Newswires he continues to believe oil is fairly valued between $60 and $65 a barrel. The Organization of Petroleum Exporting Countries has recently voiced concerns that high oil prices may hurt world economic growth.
Adding to the price pressure, French oil producer Total SA said it would resume exports at a key Angolan oil facility.
Light, sweet crude for September delivery fell 90 cents to $74.89 a barrel. August gasoline futures dropped 4.96 cents to $2.115 a gallon.
Meanwhile in Chicago, soybean futures stumbled and helped tug corn lower also. Wheat prices rose modestly.
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