US gold ends down but above lows on Dubai woes

NEW YORK, Nov 27 (Reuters) - U.S. gold futures ended 1 percent lower in
heavy volume on Friday but were well above session lows as
flight-to-quality demand offset fears of debt default in Dubai.


GOLD

* COMEX December gold settled down $12.80, or 1.1 percent, at
$1,174.20 an ounce on the COMEX division of NYMEX.

* Ranged from $1,130.10 to $1,195 -- an all-time high.

* US gold market opened sharply lower on Dubai debt worries after
Thursday's Thanksgiving holiday. [ID:nGEE5AQ13P]

* Inflationary expectations could be tamed if credit problems slow
global growth - BMO's Bart Melek.

* Graphic on relative performance of gold, copper, oil and equities
amid Dubai debt fears:
http://graphics.thomsonreuters.com/119/GLB_RSKA1109.gif

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SILVER

* December silver ends down 46.6 cents, or 2.5 percent, at
$18.302 an ounce, tracking gold's weakness.

* Ranged from $17.700 to $18.900.

* Silver, platinum group metals could face selling pressure after
recent buildup of speculative positions - Gartman.

* COMEX estimated midday volume at 77,317 lots.

* Spot silver was at $18.25, against $18.61 in the previous
session in New York.

* London silver fix at $17.98.

PLATINUM

* January platinum finishes down $32.40, or 2.2 percent, at
$1,447.10 an ounce, weighed down by a metals sell-off.

* Spot platinum $1,440.50 an ounce.

PALLADIUM

* December palladium closes down $5.25, or 1.4 percent, at
$365.70 an ounce, tracking platinum's decline.

* Spot palladium $362.50 an ounce.

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Copper steadies, but Dubai fears linger

New York, London - Copper prices had steadied by the close on Friday, though futures in New York collapsed after returning from holiday and digesting news of possible debt defaults in Dubai that shook world financial markets and boosted safe-haven demand for the U.S. dollar.


Copper for March delivery on the New York Mercantile Exchange's Comex division dropped 7.15 cents (U.S.), or 2.2 per cent, to close at $3.1255 a pound, after dealing between $3.0210 to $3.23, a new high dating back to September.

New York commodity markets were closed on Thursday for the U.S. Thanksgiving holiday. Markets traded an abbreviated session on Friday.

On the London Metal Exchange, benchmark copper ended up $34 at $6,855 a tonne, rebounding from an earlier-session trough at $6,620 - its lowest level since mid-November.

Dubai said on Wednesday it would ask creditors of state-owned firms Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring.

"The real question now is will Dubai be the catalyst for a sustained selloff, or can the market absorb the news?" asked Frank Cholly, senior market strategist with Lind-Waldock.

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Nickel, Stainless steel making ingredient ended at $16,085 a tonne from $16,575, having earlier hit a four-month low of $15,751.

Nickel inventories at LME warehouses rose 2,034 tonnes to 135,480 tonnes, their highest since early 1995.


Battery material lead was last bid at $2,290 from $2,340, after earlier plunging 8 per cent to $2,145 a tonne, its lowest since early October.


Aluminum ended at $2,016 from $2,009, having hit a two-week low of $1,950, and zinc finished at $2,230 from $2,256, having earlier fallen to a 2-1/2 week low of $2,130.


China's top aluminum producer, Aluminum Corp. of China (Chinalco), said it had restarted most of its halted capacity of alumina and primary aluminum.


Tin ended at $14,895 from Thursday's last bid of $14,990.

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Oil slides to near $74 as Dubai woes roil markets

Bangkok - Oil prices sank to near $74 (U.s.) a barrel Friday in Asia as investors curtailed their risky bets on commodities amid uncertainty about the global fallout from Dubai's financial troubles.

Benchmark crude for January delivery was down $3.50 to $74.46 at early afternoon Bangkok time in electronic trading on the New York Mercantile Exchange, extending losses from European trade. Trading in the U.S. was closed Thursday for the Thanksgiving holiday.

Just a year after the global downturn derailed Dubai's explosive growth, the emirate is now so swamped in debt that it's asking for a six-month reprieve on paying its bills. Its main development engine, Dubai World, has said it would ask creditors for a "standstill" on paying back its $60-billion debt until at least May, news that roiled markets worldwide.

"The main factor in the fall seems to be the events in Dubai," said Nick Raffan, head of mining and resources research at consultancy Fat Prophets in Sydney. "People are suddenly reevaluating their risk appetite."

After zooming to $147 a barrel in July 2008 and crashing to $32 in December, oil prices have meandered in the high $70s for more than a month as investors weigh a slow U.S. recovery against surging Asian demand.

Mr. Raffan said oil's losses Friday were driven by increased wariness about investment in riskier assets such as stocks and commodities rather than new information about actual demand for oil.

However, recent figures on durable goods orders in the U.S. suggest growth in demand for oil is likely to remain subdued for a while, he said.

In other Nymex trading, gasoline for December delivery was down 7.95 cents at $1.9181 a gallon and natural gas was off 10.3 cents at $5.06 per 1,000 cubic feet.

In London, Brent crude for January delivery fell $1.19 to $75.80 on the ICE Futures exchange.

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24 Hour Base Metals

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Gold & PGM Prices

Nov 28 2009 8:08AM NY Time dd Change Gold 1176.70 -1.28% Platinum 1436.00 -3.26% Palladium 364.00 -1.89% Rhodium 2650.00 +0.00%