TGL WHAAAAAAAT! Alerts, thoughts, discussion. Message Board

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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.

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To: Jim Bishop who started this subject	5/29/2002 1:30:21 PM
From: Jim Bishop	Read Replies (3) of 150070

Gold Cracks On Another $5 May 28, 2002 (Miningweb/All Africa Global Media via COMTEX) -- After a quiet recovery from the Memorial Day weekend in the US, gold blasted through $325 as New York traders took over from their more laid back London cousins. The gains were a repetition of last week's stop-start run through $320 an ounce and which peaked at $323. Virtually static around $320 an ounce for most of the weekend, the yellow metal suddenly cracked on $5 within the space of a few minutes. The most pointed reason for the improvement was the resumption of the dollar's decline. The trade weighted dollar index closed at 112.8, down from the preceding days' recovery above $113. The Index peaked at around 122 in early February but has been in rapid decline since. Continued nervousness about the nuclear standoff on the Indian sub-continent added another flavour of fear backed up by another suicide attack in Israel. Pakistan stoked fears by testing a missile capable of delivering nuclear warheads quite deep into India. Both countries continue to fire across the line of control in Kashmir following an upsurge of Islamic terrorism and counter attacks in the disputed territory. US officials estimate that up to 12 million people could die if India and Pakistan launch against each other. Israel has suffered a resurgence of terrorist attacks since it released its grip on the Palestinian Authority administered areas, and indications are that another clamp-down is imminent after the success of the previous campaign in stemming the attacks. The euro gained nearly a cent against the dollar and closed in New York above $0.93. The euro is emerging as a reasonable proxy for gold although insufficient time has passed since the introduction of the new currency to test the relationship adequately. It also helped that equity markets were smacked down. The Dow Jones Industrial Average gave up 123 points, or 1.2%, while the tech laden Nasdaq composite was down a more restrained 9 points or nine sixteenths of a per cent. Technical analysts say their charts are relatively free of resistance once there is a sustained break through $325. The next markers would be above $340 and thereafter the opportunity for a huge run is even better. The gold price is now matching the heights it achieved in October 1999; the run that put Cambior and Ashanti into intensive care. Given the $20 plus per ounce improvement in the price since the last quarterly reports, the industry's net negative mark-to-market value for the hedge books is estimated to exceed $5 billion, or roughly the entire implied value of a merged Placer Dome and Aurion. Gold bulls take additional succour from the fact that dealers shook off very negative comments from the recently concluded Association of Mining Analysts confab in London. Industry bar talk is that the central banks are growing restless about staying within the Washington Agreement that limits official gold sales. Perennial gold bear Andy Smith of Mitsui said as much in his comments at the AMA, but the market appears to have shrugged off the threats ? quite uncharacteristically given previous skittishness about central bank announcements. Gold was last bid at $324.50. The afternoon fix in London was $320.20 per ounce, up slightly from Monday's $320.05. by Tim Wood Copyright Miningweb. Distributed by All Africa Global Media(AllAfrica.com) -0- KEYWORD: South Africa * end of story *

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