US MIDDAY: gold retreats

03 Nov, 2004

Gold futures fell in light trade on Tuesday morning, as dealers tracked a firm dollar while Americans turned out in large numbers to vote as the tight presidential election drew to a close.
December gold at the New York Mercantile Exchange's COMEX division reached $423.70 an ounce by 10:40 am EST (1540 GMT), off $4.50 on the day, trading between $428.80 and $423.20.
"The market is drifting a little bit here, but I don't think we're going to do much. It's very quiet," said James Quinn, an AG Edwards & Sons commodity commentator, who pegged support at the $423-424 area and resistance up around $430.
As the tight presidential race came down to the wire, the final Reuters/Zogby three-day national tracking poll showed President George W. Bush leading his Democrat rival. Senator John Kerry, by 48-47 percent - well within the margin of error.
Dealers and analysts have said a clear-cut election result or a Kerry win could give the dollar a boost - which would likely pressure gold - while a protracted outcome could drag the currency lower.
Spot gold changed hands at $423.45/4.20, below Monday's New York close at $426.75/7.50. Tuesday's afternoon London fix was at $424.20.
December silver sank 17.0 cents to a session low at $7.16 an ounce, off from a high at $7.33 earlier. Spot silver fetched $7.12/15, above the previous close at $7.32/35. London's fix was at $7.195.
January platinum fell $5.40 to $827 an ounce. Spot platinum reached $824.00/828.00.
December palladium rose 50 cents to $211.25 an ounce. Spot palladium traded to $208.00/212.00.

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