Gold easing lower in quiet European business
10:48 a.m. Jan 08, 1999 Eastern
LONDON, Dec 8 (Reuters) - Gold eased in late European trade on Friday but
dealers said they expected the yellow metal to head higher next week after its recent
tests of lower levels.
Spot bullion was last quoted at $290.40/$290.90 a troy ounce, down from the
previous New York close at $291.25/$291.65.
Dealers said the bullion market was quiet with gold trading up briefly to the $292.00
level which proved to be very good resistance.
''It seems to be a bit of a sell up there at the moment,'' one dealer said.
Traders said gold had tried low levels for some time and expected bullion to move
higher next week.
''I think it should be bought again, looking to break the old high of $292.00 and
maybe stretch out to $295.00 next week. Gold has tried the lows at the moment
and also the charts look relatively friendly towards gold at the moment,'' the dealer
said.
But he said gold might run into producer selling at higher levels which will put the
brakes on any rally.
The industry-funded World Gold Council (WGC) said on Friday that the 11
European nations in the European System of Central Banks (ESCB), or eurozone,
had passed the United States as the largest holder of gold.
The WGC said in a statement that as a result of changes brought about by the
introduction of the euro, the European Central Bank and the National Central
Banks of the participating countries held 99.6 billion euros worth of gold.
According to an ECB balance sheet published on January 5, this would be
equivalent to 404.3 million ounces or 12,574 tonnes of gold compared to the U.S.
which the WGC says currently holds 8,135 tonnes of gold.
Central bank sales of gold has been a major depressing factor for the bullion price
last year and the market remained concerned about sales from the European
Central Bank (ECB).
ECB vice-president Christian Noyer said on Thursday the ECB did not plan to
either buy or sell gold to maintain it as a percentage of its overall reserves.
Silver remained quiet in European trading and was last quoted lower at $5.21/$5.23
a troy ounce from the New York close at $5.23/$5.26.
''Silver is having a quiet day, it is having a rest after a couple of day's activity,'' one
dealer said.
Platinum eased lower and was last quoted $1 down at $357.00/$359.00 while its
sister metal palladium was quoted higher at $313.00/$318.00 an ounce from its
previous close in New York at $308.00/$313.00.
((Marius Bosch, London newsroom +44 171 542 8065, fax +44 171
542 8077. london.commodities.desk+reuters.com))
Copyright 1999 Reuters Limited. |
