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Gold/Mining/Energy : MIRANDOR-MIQ ON MONTREAL -- Ignore unavailable to you. Want to Upgrade?

To: jocko who wrote (2536)	9/27/1999 12:27:00 PM
From: jocko	Read Replies (1) \| Respond to of 2635

Could this be the real thing :-) 9:30a EDT Monday, September 27, 1999 Dear Friend of GATA and Gold: Here's this morning's good news. Let's be thankful for it. But vigilant too -- the bad guys surely still have some tricks up their sleeves. We'll be watching them. CHRIS POWELL, Secretary Gold Anti-Trust Action Committee Inc. * * * GOLD SOARS AS CENTRAL BANKS ANNOUNCE SALES RESTRICTIONS LONDON, Sept 27 (Reuters) -- Gold surged 6 percent to five-month highs on Monday after European central banks said they would restrict bullion sales for the next five years. Gold stopped a dramatic overnight run just short of $285 a troy ounce, leaving August's 20-year lows far behind and staking out $300 an ounce as its next target. Gold mining shares in Australia, South Africa and Great Britain also powered higher after the 15 central banks said they would cap annual gold sales at 400 tonnes. The five-year 2,000-tonne total is just enough to satisfy world demand for six months. Market worries that many more central banks would sell gold as global inflation eased had driven the price down from an early 1996 peak of $418. "This particular announcement is such a significant change in policy it's going to provide (price) support," said Bob Beasley, a technical analyst at Barclays Capital. In one fell swoop, the European central bank announcement late on Sunday reshaped the troubled outlook for bullion, a store of value for centuries. It had seemed destined for more sharp losses after it plumbed 20-year lows when Britain announced sales of some 58 percent of its reserves in May. But one by one, the official threats to the market -- huge gold sales by the International Monetary Fund, the Swiss National Bank, and other central banks -- have fallen away amid cries from mining nations that the sales, meant in part to finance relief programmes, would hurt them by hitting prices. Together, the European Central Bank, the 11 national central banks in the euro zone, as well as the Swedish, Swiss and British central banks, control about half the world's official gold reserves. Their decision effectively removed any lingering fears of major official sales. "I think we will see $300 gold this year. It may come slowly, it may come quickly. I think we are in a new environment for gold now," Chase Manhattan precious metals analyst Martin Fraenkel told Reuters Television. Other key holders of gold reserves do not plan sales. The world's largest holder is the United States, with 8,139 tonnes, which has not proposed selling reserves. It is followed by Germany with some 3,500 tonnes and the IMF with 3,200. With bullion soaring, mining shares stormed higher across the globe. In Australia, the gold index jumped 16.5 percent by 1200 GMT while in Johannesburg, the South African Gold Index, which houses the world's two biggest bullion producers, bounded up 15 percent. Shares in AngloGold, the world's largest producer, rose 13 percent, but the company cautioned that while the gold price rise was positive, an accompanying climb in the rand might hit revenues for the country's embattled miners. "We must understand that the price is back to what it was not that long ago and, coupled with a strong rand (this rally) puts additional pressure on rand revenues from gold sales," AngloGold Finance Director Jonathan Best said. In London trading, Anglo American, which controls AngloGold, rose 10 percent and analysts believe the gold equity bull run will spread to North America when markets open. Africa's hard-pressed gold mines should be among the biggest winners from a sustained improvement in the gold price, given their lowly rating against peers in North America and Australia. -END- ------------------------------------------------------------------------ eGroups.com home: egroups.com egroups.com - Simplifying group communications