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Gold/Mining/Energy : Gold Price Monitor

GDXJ 98.59

-2.8%

Nov 13 4:00 PM EST

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To: Alex who wrote (6587)	1/23/1998 12:18:00 PM
From: JD	Read Replies (1) of 116760

More on POG surge. USAGOLD 01/23/98 (bolded for skimmers) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MARKET UPDATE (01/23/98) AM-----Gold made a major move to the upside this morning on massive short covering and investor buying having to do with the Clinton scandals, the Asian disaster and the cratering dollar. The important Hong Kong market moved higher with short covering coming in from Japan. The Asian buying reversed the trend in New York which had gold closing down $2 in yesterday's trade. It used to be that the world followed New York. It seems that trend is changing as ravaged investors in Asia having learned their lesson are likely to buy gold at every opportunity. There was strong short covering in Hong Kong at any breach of the $290 level to the downside. One Hong Kong trader was quoted on Reuters as saying that a rally bringing gold above $300 was "a good possibility" and would be followed by a rapid rise in prices as funds rushed to cover their remaining short positions. There are also rumors of mine company covering at these levels. In all markets, the strong demand for gold has been linked to the weakening dollar -- down significantly today against all major currencies. The problems in Asia continue to worsen, and most of the stock markets across the world, including the U.S. are feeling the effect. A senior Treasury official was quoted this morning in a speech at a bankers' conference as saying that the "This crisis in Asia presents serious potential risks for U. S. interests." In Indonesia the economy has ground to a halt. Reuters reports that "almost all listed companies in that country are now technically bankrupt" -- a piece of news that escaped notice for the most part in the American press. It now takes 17,000 rupiahs to buy a dollar. An ounce of gold costs 4.95 million rupiahs!! The rupiah has cratered 65% against the dollar. I hope they some advanced calculators in that country with all those zeros flying around. One has to wonder where in the world Michael Candessus and the International Monetary Fund (and the Clinton administration) think these people are going to get the money to pay back what they borrowed from the IMF when all the listed businesses in the country are bankrupt. I wonder if they have any golf courses we can buy cheap??? I don't think it will be too long until the impossibility of this situation sinks in both on Wall Street and in Washington. With the Clinton administration about ready to have a fork stuck in it, things could get out of control. Stay tuned. This could get interesting. *****BULLETIN****** As reported here yesterday rumors continue to circulate that RobertRubin is thinking of resigning. Now CNBC has jumped on the story and most of the financial community is now aware of what we reported here yesterday before the mainstream press. We heard about through the grapevine over a month ago but decided to keep it under our hat becuase there was little going on that we felt Rubin couldn't handle. With the new Cliniton revelation we thought that Rubin might be the first to jump ship and now the rumor is in the mainstream press. We were told that Rubin's wife did not like the Washington scene and waxed nostalgic for cozy confines of Wall Street. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ JD

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