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

To: long-gone who wrote (39622)	8/26/1999 7:33:00 AM
From: lorne	Read Replies (1) \| Respond to of 116898

European gold creeps up from overnight low LONDON, Aug 26 (Reuters) - Gold recovered from overnight 20-year lows in early European business on Thursday, and was seen holding in a range ahead of the day's expiry in over-the-counter (OTC) options, dealers said. London gold fixed at $253.15 a troy ounce in the morning, up from Wednesday afternoon's $252.85, helped by an early recovery in spot prices from a fresh 20-year low of $251.70 bid in late U.S. business. "With today being OTC option expiry, and with quite a few strikes around $255, we expect to see gold hold steady, with the bias neutral to slightly positive," said one London dealer. Options give holders the right but not the obligation to trade metal at an agreed date and value known as the option strike price. Expiries in monthly OTC options sometimes prompt rapid price moves before or immediately after the event as options writers limit their exposure to the market. Monday's market holiday in Britain would leave the field mainly to New York and could also drain liquidity from the market for the rest of this week, dealers said. Gold lease rates, which have been unusually high since May's announcement by Britain of plans to sell more than half its 715 tonnes of reserves, remained tight on Thursday. Gold for one month was at 3.13 percent versus Wednesday's 3.15 percent and around 0.5 percent in early May, a rise dealers ascribe mainly to increased hedge sales by mines. Spot gold was last quiet at $253.05/$253.45 versus New York's close of $$252.10/$252.60. Silver was one cent higher at $5.08/$5.11, with one dealer citing $5.04 as the big support number in the way of further losses after the market's recent decline. reuters.com