<<Traders said that news after the auction that South Africa's Gold
Fields, the world's second-largest gold producer, had bought 12% of the UK
gold at the auction was very positive. Leonard Kaplan, chief bullion
dealer at LFG Bullion Se rvices, said that the "nature of the buying" last
time around, which was dominated by dealers, had been on the bearish side.
However, with producers now buying, this is sending a positive message, he
said.
He noted that gold was starting to see some short-covering. For some
time, COMEX gold has been overwhelmed by heavy speculative short
positions.
Meanwhile, Merrill Lynch today changed its gold outlook for the rest
of the year to neutral from neutral-bearish, said Bill O'Neill, the
company's senior futures strategist (story .16366).>>
futuresource.com |
