Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: long-gone who wrote (42342)	10/7/1999 7:36:00 AM
From: Alex	Respond to of 116837

Europe Precious Metals Review: Gold Softer, Support at $315/oz <Picture> Oct. 7-MAR-- [B] Europe Precious Metals Review: Gold softer, support at $315/oz By Andrea Hotter, Bridge News London--Oct 7--Spot gold slipped lower in morning trade in London today after it failed to break through resistance at US $330 per ounce overnight in Asia. Traders believe selling orders at that level capped the market with prices then dipping though support at around $315 before returning to slightly firmer levels. * * * Gold fell steadily lower through the morning, fixing at $318 from $325 yesterday. The market then softened further to fall through support at $315 to touch $313.50 before settling back up at around $317-319. "Gold is still very volatile, the market is very nervous," one trader said. "After reaching $328 overnight the spot price has come back to around the $315 level, where it looks fairly well-supported," another trader said. Market sources believe however that if the spot price remains below support at $315 it could retrace further to below $310. "The market has dipped through $315 this morning and although it has now firmed back up slightly, whether it will hold or not at above $315 will depend on what happens in the US this afternoon," one trader said. With massive open interest showing in the Comex positions, traders believe there could potentially still be some large uncovered shorts in the market. Gold producers might be forced to cover their hedged positions in the spot market if they do not wish to pay for margin calls that were created f rom the recent surge in the gold price. Banks holding loans to gold producers might also buy gold to hedge their loans if gold prices rise further. Others argue that the funds are set to liquidate their long positions, with further downside expected. "This inbuilt volatility will continue until gold finds some kind of direction. The spreads for trade have widened to as much as $2, from $0.20 just a month ago," one trader said. One analyst added: "Prices have already seen a 50% correction following their dramatic move from $260 to $330, and they next moved from $295 to $340 and back. This kind of retracement is only to be expected while the market consolidates." futuresource.com