$283 call for $300 coming in from analysts!!!
Central bankers to freeze sales. Story Below.
Now all we really needs is the protests in London to put enough pressure for the Bank of England to halt their sales and this thing will go completely balistic. There is not enough gold around to cover the shorts in place.
For Ontex you have a 14 dollar rise presently on a resource of say 400,000 ounces including the recent drilling and the Placer reserve calculation. 14x400,000 - 5.6 million Us or just over 8 million Canadian divided by the share float of 40 million and you have an over night gain of 22 cents per share. Keep in mind thats on proven and no allowance is made for future findings. Ontex is a steal under a dollar and should now begin a rally to new highs.
FWN: 013746 CT
Asia Precious Metals Review: Gold Surges US $13 on EU Statement
Sep. 27-MAR--
[B] Asia Precious Metals Review: Gold surges US $13 on EU statement
By Polly Yam, Bridge News
Hong Kong--Sep 27--Spot gold rose by US $13 to $284 from $271 in Asian
opening due to massive short-covering worldwide on a statement from major
European central banks Sunday that said the banks would cap their gold
sales, dealers in Hong Kong said. Market sentiment turned from mixed to
bullish today and many expect the price to rise to $300 in the near
future.
* * *
The European Central Bank, 13 EU central banks and the Swiss National
Bank released a statement on Sunday in Washington to clarify their
positions on their gold reserves. The statement said that there would be
no sales beyond those already announced over the next 5 years and that the
annual sales will not exceed approximately 400 tonnes and that total sales
over a period of 5 years will not exceed 2,000 tonnes. (Story .13317
.13702)
The statement also said the signatories have also agreed not to expand
their gold leasings and their use of gold futures and options over the 5
years. It stressed that gold is to remain an important element of global
monetary reserves.
Also on Sunday, the International Monetary Fund announced that it has
officially endorsed a plan to re-value 14 million ounces of its gold
reserves through off-market gold sales. (Story .13237) This eliminated
previous fears that the IMF's gold sales in the open market would push
down spot prices.
The dealers said players holding short positions worried that they
would not be able to borrow sufficient gold to cover their positions
because those central banks will not lease more gold to the market. This
forced many shorts to cover their positions in the spot market today, they
added.
As Sunday's statement reconfirmed gold status as "an important element
of global monetary reserves", market sentiment quickly turned to bullish,
which attracted some fresh buying, they said.
Some dealers see gold rising further in the overseas market today to
$290 and to $300 in the near term. Others, however, were cautiously
optimistic about a further rise, saying that gold was overbought as the
price has already risen $13 in Asia.
Due to the strong gold, silver, platinum and palladium were steady in
sluggish trade as dealers focused on gold.
(Also see story .2192 for Tokyo Commodity Exchange precious metals
futures commentary.)
Spot precious metals prices are in US dlrs per ounce:
Hong Kong 0515 GMT Hong Kong 0000 GMT Friday's New York
Gold 283.00-285.00 271.05-272.00 268.40-268.90
Silver 5.30-5.32 5.30-5.32 5.27-5.30
Platinum 377.50-380.50 377.50-380.50 371.50-373.50
Palladium 358.00-362.00 358.00-362.00 357.00-362.00 End
Tel: (852) 5299-2466
Send comments to Internet address: metals@bridge.com
The Bridge ID for this story is 02200
(c) Copyright 1999 FWN
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