To: marcos who wrote (46612 ) 1/4/2000 5:32:00 AM From: Alex Read Replies (1) | Respond to of 116764
Gold Falls as Computers Negotiate New Year, Giving Shares More Allure By Rajat Bhattacharya Gold Falls as Y2K Bug-Free Trading Triggers Selling (Update3) (More comments from traders, updates prices) Sydney, Jan. 4 (Bloomberg) -- Gold fell as much as 2.2 percent after global financial markets reported no Y2K computer problems, prompting investors to sell the precious metal and invest in stocks. ``People are selling out on the back of Y2K being a non- event,' said Peter Upton, a gold trader at Dresdner Bank in Sydney, one of six bullion banks in Australia. Some investors bought gold last week as a ``safe haven' to park their savings, but then sold after financial markets said they were safe from the Y2k bug, he said. Almost all financial markets reported glitch-free operations on the first day of trading in the New Year. Around Asia, stock markets in Japan, Taiwan, Korea and India surged, as computers successfully negotiated the year 2000, allowing investors to focus on the region's economic growth. Gold for immediate delivery fell as much as $6.25 per ounce, or 2.2 percent, to $282.75 in Asian trading, its lowest since Dec. 21. It was recently trading $5.125 lower at $283.875 per ounce. Gold for February delivery fell as much as 1.8 percent to $284.3 per ounce on the Comex division of the New York Mercantile Exchange. It was recently trading $4.7, or 1.6 percent, lower at $284.90. Gold rose more than 3 percent in the last three weeks of December as investors bought the metal as a hedge against possible turmoil on financial markets because of the Y2K problem, which can cause computers to malfunction by reading the year 2000 as 1900. Gold may fall to $280 per ounce after trading starts in Europe today, said Duncan Cruickshank, associate director in charge of metals trading at Barclays Capital in Sydney. ``I see it going till $280, I'm not looking at a wholesale collapse,' he said. quote.bloomberg.com