The turnaround in market sentiment towards gold has come on
06:04 a.m. Apr 06, 1998 Eastern
The turnaround in market sentiment towards gold has come on the back of
a variety of factors, according to dealers and analysts, who cite as the
major one growing talk of a higher-than-expected reserve holding of gold
being planned for the future European Central Bank.
Other elements include concerns about the outlooks for the dollar, the
yen and the mark, which have made the recently neglected gold market a
more attractive proposition as a haven, American Express Bank treasury
analyst Gerry Celaya said.
''In terms of the flight to quality, we have been expecting that to
happen for a few months now given what's been going on in Asia,'' Celaya
said.
Merrill Lynch precious metals analyst Ted Arnold said strong technical
buying had triggered Monday's sharp move higher, which he said brought
$320 into play. But questions remained, he added, about when gold
producers might sell into the rally.
((Patrick Chalmers, London Newsroom +44 171 542 8057.
london.commodities.desk+reuters.com)) ^REUTERS@
Copyright 1998 Reuters Limited. |
