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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: John Hunt who wrote (36791)	7/7/1999 2:03:00 PM
From: Alex	Respond to of 116790

July 7, 1999 Sagging gold prices may have bottomed out - WGC Singapore (Sapa-AFP) - Gold prices, having slumped to the lowest point in 20 years, may have bottomed out and are unlikely to sink further, a World Gold Council official said on Wednesday. "Prices are already at a 20 year low and given such low prices it is not likely there will be a further drop," said Koh Tong Huat, regional finance, administration and planning manager at the Council's Far East office here. The price of gold fell almost two percent to a 20-year low on Tuesday after the Bank of England sold 25 tons of the metal at below market prices in the first of five auctions that traders expect in the next nine months. The Bank of England placed the gold at an allotment price of $261.20 and the spot price at one point fell to $257.05 - its lowest level since May 18, 1979. Asked what he thought of the gold industry's prospects, Koh said the issue was "more of perception than reality." "This is because gold prices are being driven now by a perception that the the central banks will offload more gold. But in reality physical demand is running ahead of supply," he said. The World Gold Council is an international organisation formed and funded by leading gold mining companies to promote demand for gold. Yasuyuki Aioi, sales manager at Japan's top marketer of precious metal Tanaka Kikinzoku Kogyo KK, said in Tokyo that the gold price plunge stemmed from a breakdown in the gold supply and demand relationship. "Demand has been declining since people see putting money into stocks is more attractive for making money," he said. Masahiro Shimoi, analyst at Daiwa Institute of Research, said: "The price fell because there was too much supply with little demand and (the world's) public institutions are expected to release their gold holdings in the market. "Given that condition right now, it is very unlikely that the gold price will go up" any time soon, he said. from E-data barney.co.za