NY precious metals end firmer, helped by PGMs
NEW YORK, June 11 (Reuter) - COMEX and NYMEX precious metals futures ended mostly higher Wednesday, led again by some volatility in platinum group metals (PGM) prices, which recovered some ground after some slippage early this week.
COMEX August gold ended off 10 cents at $346.10 an ounce, after trading a narrow $345.50-$346.50 range, on estimated total COMEX gold volume of only 7,500 lots.
In the bullion market, spot gold ended quoted $343.60/10, compared to the London Wednesday afternoon fix at $343.80 and the New York close Tuesday around $343.70/20.
Gold prices have bounced four times from around the $340 an ounce level after seeing a four year low around $337.00, but volatility has been declining in the past 10 days, with attention focused on the PGM markets.
But the postponement of the Bundesbank's gold revaluation plan last month, and the election of a Socialist government in France, were mildly positive for gold, because they reduce the likelihood of additional central bank gold sales, analysts argue.
``Since concerns about gold sales stem, in part, from governmental needs to meet Maastricht Treaty criteria, a weaker or delayed Maastricht may have constructive implications for gold,'' Prudential Securities analyst Clarence Morrison said.
``We are maintaining our 1997 and 1998 gold price estimates of $352 per ounce and $380 per ounce respectively, but if the global economic thrust continues to buoy demand for gold, and if concerns about central bank sales ease in coming months, gold could be lifted to $380 per ounce,'' he said.
COMEX July silver ended unchanged at $4.745 an ounce.
Spot silver prices have been consolidating in a $4.60-4.80 an ounce range for the past month, and the gold/silver ratio has been unusually stable around 73:1.
Meanwhile, liberalization of precious metals markets in emerging markets is continuing.
In news Wednesday, Russian First Deputy Prime Minister, Boris Nemtsov, said the government was working on plans to allow commercial banks with correct licences to buy gold bars, as part of a move to liberalize the Russian gold market announced by Russian Prime Minister Anatoly Chubais earlier.
NYMEX July platinum ended up $4.90 at $443.80 an ounce, after seeing a $432.90-448.80 range.
NYMEX September palladium closed up $4.70 at $178.50 an ounce, after seeing a $171.00-179.00.
``The funds have been doing some switches out of July platinum but are still interested in playing both platinum and palladium from the long side,'' one NYMEX floor trader said.
In overnight news, Russian metal export agency, Almaz, said in a statement that Russia would resume exports of PGMs at the ``nearest'' possible time, but gave no indication of the amount of metal Russian was likely to export this year.
Earlier the agency had said spot sales would resume on June 20 and contract supplies to Japan would resume in July. Overnight Japanese traders said they had signed deals for July-December delivery of PGMs from Russia and said they had been advised Almaz had now received its long-delayed export licence.
Russian PGM exports have been suspended for five months, causing an acute shortage of the white metals.
But separately Russia's financially-troubled Norilsk Nickel metal group, which produces most of Russia's PGMs, said overnight it had sacked the director of its precious metals processing plant and no replacement was named.
Meanwhile, the first issue issue of U.S. platinum coins hit the market this week, and demand is expected to be good as the coins were priced by the U.S. Mint in May when platinum prices were nearly $100 an ounce lower than at present.
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