Metal-go-round sends gold into spin
Saturday, February 17, 2001
Gold prices trading near their lowest level in 22 years may decline further as producers sell the metal at a time when the strong US dollar was crimping demand, analysts said.
Gold for April delivery yesterday fell $US4.30, or 1.66 per cent, to $US256.90 an ounce, its lowest closing price since September 20, 1999. It slumped as low as $US253.20 in July 1999, its lowest level since May 1979.
Meanwhile, mining companies have been borrowing metal from banks and selling it, hoping to repay the loans with less-costly supplies from future output.
The global decline was reflected in the ASX index of gold shares, which fell to its lowest level since December 4. Lihir Gold fell almost 2¢, or 3.5 per cent to 55¢.
smh.com.au |
