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

To: Gord Bolton who wrote (48593)	2/8/2000 7:00:00 PM
From: Gord Bolton	Respond to of 116762

Gold slides back after a wild ride SARAH BULLEN, Cape Town \| Tuesday 10.00am -------------------------------------------------------------------------------- THE wild rally in the gold price on Monday, which saw the metal gain over $10 on speculative activity has eased, with gold drifting back towards the $300 an ounce mark. Bullion was last quoted at a mid-rate of $304,50 from $302,50 at the New York close and off a best level of $318,00 on Monday. Gold took off on Monday on news that Canadian producer Placer Dome will cease its hedging activities. The market volleyed on expectations that other gold producers would follow suit. However an announcement by Canadian producer Barrick Gold Group announced that it merely intends reducing its hedge book put a dampener on the rally. Dealers said they expect local markets to fall to profit taking -- tracking the gold price down. Expected to provide the markets with some good cheer, however, was a late announcement by Moody Investors Service that it has upgraded its outlook on South Africa to positive from stable. The news was announced after market closed on Monday but is expected to filter through the bourse on Tuesday. Gold Fields, which bought back the bulk of its hedges last year, applauded Placer Dome's decision to end its hedging and said on Monday it hopes other companies will also kick their hedge addiction. "My biggest concern is the Australians who are committed hedgers and simply use our efforts as an excuse to hedge more," Gold Fields CE Chris Thompson told Reuters in an interview. "The gold price needs to go far enough for them to see it does not make sense to stay hedged in a volatile upmarket," said Thompson, who has been a loud critic of gold hedging. Last week, he said it is insane for companies to keep major hedge books that have depressed gold prices and make new mining projects uneconomic. ZA*BUSINESS: