Gold closes sharply lower Last Week!

[Scubawarrior]

Traders lock in gains after metal's spectacular bull run!!


NEW YORK (MarketWatch) -- Gold futures closed down $14.60 an ounce Friday for a 3.2% loss on the week, resuming the consolidation trend that set in earlier in the week following recent quarter-century high!

Gold for April delivery closed at $553 an ounce on the New York Mercantile Exchange, wiping out all of its more than $14 an ounce gains of the previous session.
Traders were unfazed, describing the movement as a normal pattern after the metal's bull run of the last six months.
"Since bottoming in 2001, gold has seen a two-steps-up, one-step-back rise, and Monday's big drop is nothing more than the start of the one-step-back part," said Peter Grandich, editor of the Grandich Letter.
"While the correction should test at least the $535-$540 area and, if broken, as low as $510-$525, such a move is not to be construed as the end of the bull run," he said, adding that a rally to $600 "remains a question of when, not if, for 2006."
Action Economics said a strong yen was also weighing on the metal. The yen rallied on strong Japanese data overnight, squeezing out some yen-funded margin long positions in gold. Volumes in Asia and Europe were lower than normal after what has been a volatile week for the metals market.
Analsyts agree that the selling has little to do with fundamentals which remain strong given the continued physical demand for gold in countries like China and India.
"A pullback to the lower part of the $500 will see the pent-up physical demand from India and other physical buyers return in force, but not chasing prices," predicts Julian Phillips, analyst at Goldforecaster.com.
"With no change in the strong fundamentals, this market is far from over.  But the market needs a new foundation for the price, lower own."
At Goldseek.com, analyst Peter Spina agreed, and said any selloffs in gold will find many willing buyers. Spina believes gold could eventually surpass $1,000 an ounce.
"One component of the bullish argument is the record-setting U.S. trade deficit data released this morning," he said.  "This problem for the U.S. dollar continues to grow by the day and this just adds to the luster of gold."
Also on the move in metals, copper closed down 8.05 cents at $2.245 a pound. The contract lost 3.6% on the week.
Earlier, Prudential lowered its rating on the copper industry to neutral from favorable, citing prospects for weaker-than-expected demand.
Analyst John Tumazos cut his global copper consumption forecast for 2006 to 4% from a previous 5.2%, "as housing starts and vehicle production in the U.S. are expected to have negative-to-flat year-over-year comparisons and demand in South Korea and Taiwan is weak."
Tumazos is sticking with his copper price forecast of $2.00 per pound.
Meanwhile, silver futures finished down 28 cents at $9.38 an ounce, and were down 3.9% on the week.
Platinum was down $33.80 at $1,040 an ounce for a 3.9% decline on the week. Sister metal palladium lost $19.80 to $284.65 an ounce and was down a staggering 10.5% on the week.
On the supply side, copper inventories were down 658 short tons at 44,911 short tons as of late Thursday, according to Nymex.
Gold supplies were up 10,330 troy ounces at 7.39 million. Silver stocks were unchanged at 125.5 million troy ounces.
As might be expected, metals and mining equities fell sharply along with the slump in metals prices.
Among sector benchmarks, the CBOE Gold Index (GOX : CBOE Gold Index
News , chart, profile, more
Last: 131.59-4.69-3.44%

4:50pm 02/10/2006
Add to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
GOX131.59, -4.69, -3.4%) closed down 3.34% at 131.59, the Amex Gold Bugs (HUI : amex gold bugs index equal-$ weight
News , chart, profile, more
Last: 310.21-10.68-3.33%

4:04pm 02/10/2006
Add to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
HUI310.21, -10.68, -3.3%) lost 3.3% to 310.21 and the Philadelphia Gold and Silver Index (XAU : phlx gold silver index capital-weight
News , chart, profile, more
Last: 138.66-4.39-3.07%

4:04pm 02/10/2006
Add to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
XAU138.66, -4.39, -3.1%) was down 3.1% to 138.66.
As for individual stocks, Phelps Dodge (PD : Phelps Dodge Corporation
News , chart, profile, more
Last: 142.06-5.94-4.02%

4:02pm 02/10/2006
Add to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
PD142.06, -5.94, -4.0%) was a standout.
The copper producer's shares moved down 4% at $142.06, after Prudential's Tumazos cut the stock to neutral from overweight, to reflect his reduced outlook for the industry. 

Acontecimentos sem surpresa !