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

To: Tom Byron who wrote (47395)	1/23/2000 11:16:00 PM
From: Alex	Read Replies (2) \| Respond to of 116759

Bank to auction 25 tonnes of gold By Gillian O'Connor, Mining Correspondent The fourth of the UK's controversial gold auctions takes place tomorrow when the Bank of England will sell a further 25 tonnes from the UK's reserves as part of its plan to sell 125 tonnes in the current financial year. The plan, which involves selling a total of 415 tonnes over the next few years, leaving the UK with just 300 tonnes, provoked a storm of criticism from gold mining companies and countries when announced last May. Tomorrow's sale is expected to realise about $230m, slightly less than the November auction, but more than those in July and September. At the end of last week the metal price was $287.75 per ounce. After the UK announcement, large sales of bullion by mining houses and speculators pushed the price gradually down to just above $250 an ounce last July. But a statement on September 26 by the European central banks that they planned to limit both sales and loans, prompted a sharp recovery in the price, causing severe liquidity problems for Ashanti, the Ghana-based, UK-listed miner, and for the smaller Canadian Cambior, now fighting a hostile bid from Aur Resources. But during the past three months the gold price has fluctuated within a band of about $280 to $300 per ounce. The price at the UK's first auction on July 6 was $261.20, and it was 5.2 times covered; in the second auction it was $255.75, eight times covered; and on November 31 it was $293.50, just over twice covered. In both the last two auctions big South African mining companies have been among the successful bidders. Gold Fields bought 100,000 ounces at the second auction and AngloGold bought 300,000 ounces at the third. ft.com