Last Update: 4:16 PM ET Nov. 11, 2002
NEW YORK (CBS.MW) -- Gold futures closed little changed Monday after posting gains over the last two trading sessions, but analysts said a weakening dollar should continue to make the yellow metal attractive for foreigners.
Most major metals indexes ended lower for a third-straight session.
The New York Mercantile Exchange's December gold futures contract closed at $321.60 an ounce, down 10 cents with many U.S. traders out for the Veterans Day holiday.
The contract gained nearly $4 during the previous two sessions.
At least two analysts Monday said the likelihood for a rally in gold futures is high.
Leonard Kaplan, president of Prospector Asset Management in Evanston, Ill. told clients last Wednesday's Fed rate cut is "certainly quite significant for the gold market." The lower interest rate will have a "profound effect" on the value of the U.S. dollar, and therefore on the price of gold, he said. A weaker U.S. dollar makes dollar-denominated gold less expensive to foreign traders.
For now, as the stock market awaits Iraq's response to the resolution, which is due by Friday, gold looks to continue in its range of $315 to $323, with possible room up to $325, according to James Moore, an analyst at TheBullionDesk.com, a gold commodity information Web site.
