October 29, 2006	Sunday	Shawwal 5, 1427

NEW YORK, Oct 28: Gold rose on Friday, recapturing the $600/oz mark as softer-than-expected US economic growth data weakened the dollar. Oil and copper prices also rose.

In agricultural markets, corn and soybeans rose while soyabeans ended mixed. Arabica coffee rose but cocoa fell a day after seeing one-month highs. Raw sugar fell on speculative selling.

Orange juice futures firmed on modest buying. Cotton settled mixed after two days of gains.

The Reuters/Jefferies CRB Index, a broad indicator of commodity prices, settled 0.19 per cent higher at 312.37. The Goldman Sachs Commodity Index climbed 0.14 per cent to 5,907.16.

December gold at the COMEX division of the New York Mercantile Exchange settled up $1.20 at $601 an ounce in a bullish but uncertain market.

While there was a positive aspect about the oil price and the US dollar, which lent support to the gold market, some of the trading really had a bit of a strained feel about it and almost gave the impression that some players were trying to force the market above $600 and it didn't feel like going,” said Bernard Hunter, director of precious metals at Toronto's Scotia Mocatta.

The US government said gross domestic product grew at a slower 1.6 per cent annual rate during the third quarter than the 2.2 per cent economists had expected and the 2.6 per cent of the prior quarter.The GDP number -- the weakest in three years -- was followed by a bigger than expected rise in the University of Michigan's consumer sentiment index, putting a lid on a Treasury bond rally.

Investors then took profits in the stock market, freeing up money for precious metals, which have enjoyed improving sentiment and rotation out of other markets this week.

The dollar fell with stocks, hurt by both the GDP data and assumption that the Federal Reserve might lean toward easing interest rates in 2007. That, and oil prices holding firm above $60 a barrel, gave gold bulls an excuse to buy the dip.

Oil rose toward $61 a barrel on Friday after Britain's Royal Navy said forces had been deployed to counter a possible threat to the world's largest oil export terminal in Saudi Arabia.

US crude rose 39 cents to finish at $60.75, while London Brent rose 31 cents to $61.08. Western naval forces in the Gulf moved to counter a possible seaborne threat to Saudi Arabia's Ras Tanura oil terminal, Britain's Royal Navy said.—Reuters