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

To: Bobby Yellin who wrote (44295)	10/29/1999 9:41:00 AM
From: lorne	Respond to of 116762

Gold quiet beneath $300, seen building range Reuters Story - October 29, 1999 07:04 LONDON, Oct 29 (Reuters) - Gold traded in a narrow range below $300 during early European business on Friday, witnessing ample lending liquidity in nearby dates and buying interest beneath the market, dealers said. London gold fixed at $298.85 a troy ounce in the morning versus Thursday afternoon's $296.25, reflecting gains during late U.S. trade overnight. Spot gold was last at $298.25/$299.25, barely changed from New York's Thursday close of $298.40/$300.40. "It closed quite well in New York which got most people cautiously bullish," one London dealer said. "It could go over $302 but $302/$303 will be relatively toppish. There appears to be good buying in the $295/$296 area, it's building itself a little range here," he added. Short-dated lease rates remained super liquid compared with their spike in early October, with one-month quoted at 0.91 percent, a fresh low since June and well down on its recent peak above to 10 percent. Miners and other bullion market participants typically borrow gold for a variety of forward transactions, hoping to profit not only from future price moves but also from the discount between gold and dollar interest rates. The tactic came badly unstuck for some in late September after a pledge by 15 European central banks to limit gold sales, lending and derivatives activities, a move which rocketed prices to two-year highs near $340 and flipped the usual gold/dollar lending discount into a premium. Unusually heavy producer hedging, concerns about computer disruptions from the 2000 date change and year-end book squaring had already removed liquidity from market, liquidity which returned with a vengeance as conditions calmed. "A few weeks ago people were thinking they didn't want to be short and now they have ended up long. There's lending like crazy in the one and two-week periods," one dealer said. In industry news, South Africa's AngloGold Ltd reported headline earnings of $86 million for the quarter ended September 30, up four percent from the previous quarter to June. Silver was last unchanged versus its U.S. close of $5.28/$5.31, platinum was 50 cents down at $420.00/$425.00 and palladium was up $3 at $391.00/$396.00 marketwatch.newsalert.com

To: Bobby Yellin who wrote (44295)	10/29/1999 11:14:00 AM
From: Lightning	Read Replies (2) \| Respond to of 116762

One of the basic axioms of investing is to buy low and sell high. Selling calls is a bearish tactic. So the writers must have expected the POG to go lower. When markets go to the extremes in either direction (up or down), smart traders will fade the market by taking the opposite side of the irrational exuberance or pessimism (as the case may be). I would submit that miners should have had some sense that $255 per ounce was not a sustainable (long-term equilibrium) price since this doesn't cover their all-in costs of production and there is a huge gap between annual supply and annual demand at that price level. If not, then these guys need to fire their CFOs and hire a first-year MBA student to do their market and financial analysis. IMHO, of course!