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: William Peavey who wrote (45227)	11/22/1999 11:07:00 PM
From: lorne	Read Replies (1) \| Respond to of 116914

Jordan's central bank sells half of its gold reserves Amman--Nov 21--Central Bank of Jordan Governor Ziyad Fariz disclosed Saturday that the bank recently sold half of its 835,469 ounce gold reserves. In a lecture at the Banks Association, Friz said that the recent growth in the country's reserves of foreign currencies to an unprecedented level of $1.9 billion had enabled the CBJ to cut interest rates, but he criticized commercial banks fo r their failure to make similar reductions in lending interest rates. (Story .10669) Canada September gold total output falls 10.62% from August Toronto--Nov 22--Canada's total gold production fell 9.58% in September from the same month in 1998 to 13.146 million ounces and fell 10.62% from August, Natural Resources Canada said Nov 18. September primary silver production was down 17.96% from the same month in 1998. (Story .2176) Metals Commitments Analysis:Gold shorts dn ahead of UK auction New York--Nov 19--Today's Commodity Futures Trading Commission commitment of traders report for gold futures showed speculative short positions for the 2 weeks ending Tues Nov 16 fell 17,750 contracts to 25,319 contracts. They fell o n position squaring amid fears that the UK's third gold auction, set for Nov 29, could again be a catalyst for an uptick in prices like it was in September. (Story .2099) crbindex.com

To: William Peavey who wrote (45227)	11/23/1999 8:40:00 AM
From: Alex	Read Replies (1) \| Respond to of 116914

FOCUS-NY Fed chief ties rate hike to current account By Marjorie Olster NEW YORK, Nov 22 (Reuters) - The Federal Reserve's decision to raise interest rates last week was based at least in part on concerns U.S. demand is outstripping supply, which in turn inflates the current account deficit, New York Fed President William McDonough said on Monday. McDonough's comments were the first from a top Fed official indicating that uneasiness about the swelling trade imbalance figured into the Fed's decision last Tuesday to raise two key interest rates by a quarter percentage point. ``A somewhat firmer monetary policy no doubt has some beneficial effects in bringing better order to our foreign accounts,' McDonough told a Foundation for Student Communication conference. Spelling out what the Fed sees as one of the major imbalances that could derail a nearly nine-year-old expansion, McDonough said domestic demand has been running in excess of supply, and that gap is being filled by ``importing savings' from other countries. ``The very large current account deficit that we have now ... is not a good idea. ... At some stage, foreign holders of American assets -- be they bonds, stocks or foreign direct investment -- are going to think that they have had quite enough,' he said. ``That combination of things is what led us to the conclusion that the rates should be increased.' The deficit in the U.S. current account, the broadest measure of trade with the rest of the world, ballooned 17.5 percent in the second quarter to a record $80.67 billion. When the trade gap worsened during the global financial crisis in 1998, that was seen as a reflection of the relative health of the U.S. economy and strength of domestic demand that made the U.S. consumer the ``consumer of last resort'. The Fed kept U.S. financial markets on track and eased some of the global strains when it cut interest rates three times in rapid succession in the fall of 1998. But this year, the Fed's focus has switched firmly back to domestic economic concerns, and with that came three rate hikes and increasing reminders that the current account deficit is not sustainable. The Fed last week raised the federal funds rate on overnight loans between banks to 5.5 from 5.25 percent and the discount rate on direct borrowing from the central bank to 5.0 from 4.75 percent. McDonough praised central bankers for recognizing that their old economic models, which saw a stable tradeoff between growth and inflation, were no longer effective and the economy was behaving differently in these days. ``Our view now is the economy can grow at 3.5 percent per year,' McDonough said. ``As long as the rate of productivity continues to rise, you can have the economy continue to grow faster without inflation.' For years, Fed economists had theorized that the economy's potential rate of growth was around 2.0-2.5 percent and if it exceeded that ``speed limit' inflation would begin to accelerate. But the upswing in productivity in the past few years and a falling unemployment rate without accompanying inflation have forced the Fed to rethink old equations. ``We didn't fight it. We allowed the American economy to grow. That is I think our finest hour,' McDonough said. -------------------------------------------------------------------------------- biz.yahoo.com