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

To: Enigma who wrote (45705)	12/7/1999 2:26:00 PM
From: Alex	Respond to of 116795

] NY Precious Metals: Gold rebounds from Mon losses; Feb up $7.1 By Cristine Denver, Bridge News New York--Dec 7--COMEX Feb gold was up $7.1 at $285.3 at 1345 ET, rebounding from Monday's losses as the market reassessed its reaction to news that the Dutch plan to sell 100 tonnes of gold next year and 300 tonnes in total over the next 5-years. Although Monday's knee-jerk sell-off was not surprising, the news should have little longer-term impact on the market, traders said. * * * Tuesday's recovery reflected a "more sober evaluation" of the Dutch news, "which strictly isn't news at all because it fits into the ECB plan," Refco analyst Jim Steel said. Feb gold had settled down $3.90 at $278.20 after the sale plan was announced Monday. Although the initial reaction was largely psychological, reflecting the gold market's continued vulnerability to such announcements, some sources suggested that initial confusion over how the Dutch plan fit into the previously announced European central bank scheme may have contributed to weakness Monday. The European Central Bank, 13 EU central banks and the Swiss National Bank released a statement in September to clarify their positions on their gold reserves. The statement said that annual sales will not exceed approximately 400 tonnes and that total sales over a period of 5 years will not exceed 2,000 tonnes. (Story .13317, .13702) Switzerland has already said it will sell 1,300 tonnes, while the UK sold 50 tonnes before the Washington agreement was announced and plans to sell a further 365 tonnes. The Dutch central bank said the sales were in accordance with the agreement of the European system of central banks. The central bank will not announce to the market when it will actually sell the gold although the sales should be easily monitored through the European Central Bank's regular release of its balance sheet. Given the chance to reassess the initial market reaction, traders said that the slide Monday was an overreaction. Gold bounced back healthily overnight, supported by good physical demand out of Asia, and continued to show a firm tone through US trade. A late burst of activity was largely attributable to short covering and bank/dealer buying, with no particular fresh news behind the move, traders said. End Bridge News, Tel: 212 372 7564 Send comments to Internet address: metals@bridge.com The Bridge ID for this story is 02332 futuresource.com