To: KEVIN TISDALL (372 )
From: KEVIN TISDALL Wednesday, Nov 18 1998 8:47PM ET
Reply # of 373
goldminingoutlook.com OF THE DAY: Commodities rose slightly on Wednesday, while precious metals closed higher across the board. Gold gained $3.30, silver added 4.5 cents, platinum rallied $3.50, and palladium soared $11.65. Gold thus moved above its 200-day moving average after fluctuating about that key technical level for several consecutive trading days. Generally such a resolution leads to further gains as chartists go long. The U.S. dollar staged a late rally. Bonds rose; the 30-year U.S. Treasury bond surrendered more than half of its early gains by the end of the day. The stock market was generally higher, though breadth was unimpressive. Internet shares moved out of the Milky Way Galaxy into the great beyond, though even the discovery of extraterrestrials would not be able to generate sufficient profits to justify current valuations.
According to the World Gold Council, total worldwide demand for gold in the 3rd quarter of 1998 was 676 tonnes, 1% below the 3rd quarter of 1997, and marking a sharp increase from depressed levels earlier in the year caused by temporarily reduced buying from countries in economic recession. This is especially significant since citizens of those countries, faced with substantially lower buying power especially in U.S. dollar terms, have resumed their pre-recession purchase volumes. The 1998 level therefore represents a much higher percentage of total disposable income being spent on gold than in 1997.
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