Slight Rally for Gold

Turning to the miners, the Chicago Board Options Exchange Gold Index rose 0.1%, buoyed by the rising metal prices.

Negatively impacting the index somewhat were shares of component company Newmont Mining(NEM Quote), lower by 1.9% at $42.84. Prudential cut its rating on the mining giant to underweight from neutral and trimmed the stock price target to $40 a share from $50.

Meanwhile, in the base metals sector, copper prices saw a rally erased in late action, with contracts for March delivery closing off 0.7 cents at $2.528 a pound on the Comex. Prices hit an intraday high of $2.585 a pound.

The dip marks another dour day for a copper traders, who have seen prices tumble lately. As recently as November, copper for immediate delivery averaged around $3.19 a pound, according to data from the London Metal Exchange.

A new report from the Economist Intelligence Unit, a provider of country, industry and management analysis, is forecasting that prices will rebound somewhat and have a mean price throughout 2007 of $3.04 a pound.

"You are likely to see some bargain-hunting emerging around these levels," says Kona Haque, a commodities analyst at EIU in London. Haque adds that China's re-entry into the market as an importer will bolster demand during the year and drive prices up from current levels.

Shares of miner Freeport-McMoRan Copper & Gold (FCX Quote) gained 1.5%.