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

To: PaulM who wrote (49844)	3/1/2000 11:30:00 AM
From: Alex	Read Replies (2) \| Respond to of 117011

Fed: Swiss weak link in gold agreement, says analyst CANBERRA, March 1 AAP - Switzerland was potentially the weak link in an international agreement limiting the amount of gold central banks can release to the market, a conference was told today. JB Were gold analyst and partner Malcolm Southwood said the amount of gold sold by central banks had peaked and would not overwhelm the market in future years, despite the low inflationary environment. But he told an Australian Bureau of Agricultural and Resource Economics (ABARE) conference the Washington Agreement, signed by European central banks, was not set in concrete. Mr Southwood said while he believed the agreement would hold, Switzerland was potentially a weak spot as it was not a member of the European Central Bank. "If the Swiss were to fall out, the agreement would look vulnerable," he said. The Washington Agreement limited the sales of gold reserves from central banks in Austria, Belgium, France, Finland, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland and the UK to 2,000 tonnes over five years to 2005. The announcement of the agreement in September lifted the threat of a flood of gold to the market and sent the price of gold in Sydney rebounding to a high of $US337.50 per ounce on October 6. It is currently trading around $US293.00 per fine ounce, and Mr Southwood said JB Were had forecast a trading range of $US275-320 per ounce over the next 18 months. ABARE researcher Michael Evans said the forecaster expected gold to average $US300 per fine ounce in 2000, driven by growing demand for jewellery as well as official constraints on supply. But he said in the medium term, ABARE expected prices to turn downwards again. AAP kmh/mfh/apm 03 2002 quote.com