Daily Gold Update

Source: Marketwatch.com

New York— Gold futures ran up to an 18-year high Thursday, extending the double-digit gains seen in the previous session, while copper futures continued their march to all-time highs.

Gold for December delivery traded as high as $486.90 an ounce on the New York Mercantile Exchange and was last up $6.70 at $485.80.

The precious metal had surged $10.10 on Wednesday.

"Gold's move to $480 makes further near-term strength likely," said Morgan Stanley technical analyst Mark Newton, who sees a possible retest of the December 1987 highs near $500, then a move up to the $515 to $525 range.

Merrill Lynch technical analyst Dennis Mark believes the run-up in gold prices toward $500 will give the gold market a psychological boost, and continue propel gold stocks.

December copper tacked on 1.4 cents to a fresh all-time high of $1.949.

CS First Boston attributed the gains to continued speculation regarding China's potential large short position and its ability to export metal in order to cover.

The speculation surfaced after the Times of London reported on Tuesday that a Chinese copper dealer, who worked at the Chinese State Reserve Bureau, disappeared after selling an estimated $800 million worth of copper short.

December silver climbed as high as $8.14 an ounce – the highest price seen in intraday trading since Dec. 6 — and was last up 9.8 cents at $8.10.

Meanwhile, January platinum reached a contract high of $1,000 in intraday trading, reaching the objective of many analysts, but has since pulled back. The front-month contract was last down $6.20 at $983.50.

The platinum price record for any futures contract month is $1,189.50 — set on March 5, 1980, according to Nymex. The record for a front-month contract is $1,085, set on the same date, the exchange said.

December palladium also pulled back from contract highs. Platinum's sister metal was up as much as $2.85 at $264.35 earlier in the session, but was last down 50 cents at $261.00.