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Wednesday, September 3, 2008

UPDATES ON SEPT 3 2008

SEPT 3 WEDNESDAY

Silver tracked gold lower to $ 13.20 / 13.36 an

ounce from $ 13.40 / 13.46 an ounce late in

London.

Gold crossed below $800 an ounce and closed sharply lower

on Tuesday. December gold moved to $810.50, down $24.70

on the session. The precious metal hit as low as $798.50.

The U.S. dollar showed a mixed trading against its major

counterparts in the early New York session on Friday,

following the release of personal income and personal

spending reports for July. The dollar dropped to a 1-week

low against the yen, but added to its two-year best versus

the struggling pound. The greenback was up modestly

against the euro.

On the economic front Tuesday morning, the Department of

Commerce released its report on construction spending in

the month of July, showing that spending decreased by a

little more than economists had been expecting due in part

to a continued weakness in spending on residential construction.

The report showed that construction spending fell 0.6 percent

in July following a revised 0.3 percent increase in June.

Economists had been expecting to decrease by about

0.4 percent, which would have matched the 0.4 percent

decrease originally reported for the previous month.

Later in the week, traders are likely to keep a particularly

close eye on the Labor Department's monthly employment,

set for release on Friday.

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