Gold higher in London morning trade, likely to hold at $630-38/oz

London (Platts)--29Dec2006

Gold was indicated slightly higher in London morning trade Friday with
players unlikely to be too aggressive on the last trading day of the year,
ahead of the New Year long weekend.
Spot bullion was indicated at $634.30/oz at 1026 GMT Friday, up from its
late New York spot price of $633.40/oz and higher still from its Thursday
afternoon fix in London at $632.00/oz.
Bulliondesk.com analyst James Moore said traders were "unlikely to be too
aggressive" on the last trading day of the year with gold likely to hold in
the $630-38/oz area. "Yesterday's move has been healthy for the charts with
resistance now pegged at $638/644 and $650," he said.
Standard Bank London said in a morning web site report that having broken
through key chart levels at $630/oz, further gains could be in store for gold
should it be able to hold above $630/oz and position for a break higher in the
New Year. "Suspected funds re-positioning for the coming year after its recent
corrective phase would also likely provide support in the interim. Resistance
is now likely pegged around $640 with support at $624," said Standard.
Meanwhile in the currency markets the euro was bid at $1.3166 at 1032 GMT
up from $1.3130 at 1600 GMT Thursday. The yen was at Yen 118.90 to the dollar
on Friday morning, gaining against US currency from Yen 119 on Thursday
afternoon.

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