DJ PRECIOUS METALS: NY Gold Seen Up $9, Silver Up 34 Cents

NEW YORK, Mar 03, 2008 (Dow Jones Commodities News via Comtex) --

April gold futures are expected to open floor trading in New York around $9 an ounce higher Monday, based on electronic activity ahead of the pit session at the Comex division of the New York Mercantile Exchange. May silver is expected to be up 34 cents an ounce.

At 7:53 a.m. EST, spot gold was trading up $6.80 to $980.60, while the April futures on the Chicago Board of Trade were up $8.60 to $982.90 an ounce.

In overnight trading, spot gold was hovering near record levels as markets priced in more bad news for the U.S. dollar, and with crude oil above $100 a barrel, traders and analysts see gold taking out the $1,000 key level this week, if not this session.

Most-active Comex April gold hit a contract high overnight of $987.30 as nearby March hit a front-month record of $984.20. Comex most active May silver hit a contract high of $20.295 overnight. Nearby March peaked at $20.19, the highest level for a front-month contract in 27 years.

In other markets that have the potential to impact metals in the short term, the euro is up to $1.5206 from $1.5177 late Friday afternoon. In screen trading ahead of the pit open, the March S&P 500 futures are down 3.8 points to 1,327.50. April crude is down 45 cents to $101.39 in overnight activity.

U.S. economic reports at 10 a.m. EST (1500 GMT) on Monday include the February ISM Manufacturing Index, expected at 48, and January construction spending, with new construction expected down 0.7%.

In New York Friday, continuing economic concerns, a U.S. dollar near record lows and weaker equities boosted gold futures. April gold settled $7.50 higher at $975 an ounce. Comex May silver settled 20.5 cents higher at $19.915 an ounce.

Comex gold warehouse stocks were down 791 ounces at 7,371,272 ounces Friday, while silver stocks were up 96,531 ounces at 135,036,924 ounces.

-By Matt Whittaker, Dow Jones Newswires; 201-938-5959; matt.whittaker@dowjones.com

(END) Dow Jones Newswires

03-03-08 0815ET