Gold surge points to cyclical market turn
In New York story headlined ``Gold surge points to cyclical market turn - CPM' please read as last sentence ``Global gold production is forecast to increase 2.7 percent to 68.6 million ounces in 1999, according to CPM.' instead of "...increase 12.7 percent...
Corrects increase.
A corrected repetition follows.
NEW YORK, Nov 2 (Reuters) - The sharp increase in gold prices off 20-year lows in August probably marks a cyclical turn in the gold market, CPM Group said Tuesday in its 1999 gold survey.
``While many market observers attributed the October price increase to a statement about limiting future gold sales by the European Central Bank, the report points out that gold prices already were rising dramatically before the announcement. The announcement fueled the increase but did not cause it,' CPM Group said in a press statement ahead of releasing its gold survey.
Gold hit a series of 20-year lows by the end of August, touching $251.70, the lowest bullion price since mid-May 1979, amid the fallout from Britain's first gold sale on July 6. The country will sell 125 tonnes of gold reserves, split in five equal parcels, by March 2000 as part of its plans to eventually cut reserves to 300 tonnes from 715 tonnes.
In September, gold soared about $65, peaking near $340 an ounce, after 15 European central banks on Sept 26 pledged to curtail gold sales, lending and derivatives use for five years.
CPM said it estimates central bank gold sales will reach 7.4 million ounces in 1999 and rise slightly to 8.0 million ounces in 2000.
The trade group said heavy bank selling of gold reserves is likely at its end with gold investment falling from 15 million ounces in 1998 to 11.8 million ounces this year.
On supply-demand, CPM estimates 1999 global refined gold supply to rise 1.1 percent to 105.6 million ounces in 1999 and inch up to 108.2 million ounces in 2000.
Global gold production is forecast to increase 2.7 (corrects from 12.7) percent to 68.6 million ounces in 1999, according to CPM.
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