Gold was slipping Monday as the dollar rebounded from its recent thrashing.
Prices for December-delivery gold contracts were recently moving lower by $3.90 at $626.20 an ounce on the Nymex, and the bullion exchange-tradedfunds followed the futures down, with shares of
streetTracks Gold Shares
iShares Comex Gold Trust
both dipping about 0.6% recently.
In the currency markets, the dollar was recently buying 118.13 yen, up from 117.59 yen, late Friday. It was also trading up against the euro, which was recently at $1.2811 up from $1.2847.
From a technical analysis viewpoint, scale-down buying should provide support for gold down to about $620 an ounce, according to a brief from bullion bank ScotiaMocatta in Toronto. "The metal's prospects for future strength will be enhanced by a period of consolidation," the report notes.
The falling metal price was dragging down the mining complex with the
Market Vectors Gold Miner ETF
falling about 2% recently.
Freeport-McMoRan Copper & Gold
were moving lower, off 5.7% and 2.7% respectively.
In base metals, Comex copper contracts were recently up 3.10 cents at $3.1195 a pound, bouncing slightly following
"Inventories trending higher would be just fine were prices falling to a level that would discourage supply," writes Tobin Gorey, in a research note from the Commonwealth Bank of Australia. The problem, he says, is that isn't happening because "new capacity, even with the greatly inflated
production costs of the past few years, still costs much less than current prices."
Elsewhere, diversified miner
announced it produced 249,900 tons of copper during the third quarter, a drop of 20% from the prior three months, and off 19% from the third quarter last year.
Production of aluminum at the company held up at 337,000 tons for the last quarter, down only 2% from the three months ending June, but up 1% from the same third quarter a year before.
BHP's shares were falling 4% recently on separate news that the company was purchasing a share in the Genghis Khan oil-and-gas development.
Also falling were shares of
, off 4%; and
Companhia Vale do Rio Doce
, down 3.2%, lately.