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

To: PaulM who wrote (52563)	5/11/2000 7:52:00 AM
From: scotty	Respond to of 116832

Comex gold/silver options expire tomorrow. Looks like another series of calls expire worthless. Gold could come alive after expiration...scotty

To: PaulM who wrote (52563)	5/11/2000 9:47:00 AM
From: Alex	Read Replies (1) \| Respond to of 116832

Gold unflustered by Swiss data Sara Marani London ? European gold prices ignored Swiss National Bank (SNB) data on Thursday that showed the country had placed what analysts estimated to be around 6.5 tonnes of bullion since May 1. While data in the SNB's regular 10-day statement gave no information about precisely how much bullion it had sold, analysts calculated the amount from the numbers provided on the bank's gold and gold lending activities. "The method they've used makes it almost impossible to be completely accurate. But it's fair to say they've sold between five and 15 tonnes," said John Reade, analyst at Warburg Dillon Read. "The category they give data for includes gold and gold lending, so it's not just the physical amount of gold -- the proceeds of their gold lending is also added in." Spot bullion prices were $276.50/$277.00 an ounce after the Swiss data emerged, virtually unmoved from an opening $276.80/$277.30. By 1310 GMT the price was at $277.10/$277.60 against a New York close of $277.40/$277.90. FOCUS ON 6.5 TONNES Some analysts went further, pinpointing the 6.5 tonne figure. "You have to make assumptions," said Andy Smith at Mitsui. "You have to know the maturity of gold lending, look at the gold interest rate change over the period and assume the maturity of lending hasn't changed in between, and also that sales were all at spot (prices). Assuming all that, I get a figure of 6.5 tonnes." The market had already begun its own pro rata calculations, based on the fact that the Swiss said they hoped to place 120 tonnes of their 2590 tonnes of reserves by the end of September. "The market had calculated about a tonne a day, so this amount is actually a bit bearish," said one trader. "It's less than that since it was seven working days. It will just mean prices stay range-bound for now." The lower the amount, the more negative it was for the market since it implied big sales to come. "Having announced the amount they're going to sell, the good thing for the market would be an announcement of a big sale which means there's less to come," said Macquaries Equities Ltd analyst Kamal Naqvi. "But last week was a weak market, so it's logical for them to sell less." The Swiss are carrying out the sales via the Basle-based Bank for International Settlements (BIS). "The BIS will wait until the market moves up a bit, they'll want to sell into strength. So we probably won't see any big sales until prices move higher," said a trader. Despite the difficulties in nailing down the precise amount of sales, some degree of obscurity and unpredictability was probably no bad thing for the gold price, analysts said. "While they've got to make more than just a gesture in the direction of transparency, at the same time I think it's right that there is some sense of opacity around it," said analyst Tony Warwick-Ching of Virtual Metals. "They'll be looking for big producer buybacks, opportunities to sell into the market and get a decent price." The SNB's gold reserves swelled to 39.55bn Swiss francs in early May as it revalued holdings at market prices, masking the impact of the sales started on May 1. The central bank said gold and claims from its gold lending rose by SFr27.60bn from the end of April to SFr39.55bn on May 10. Freed by new legislation from the Swiss franc's outdated peg to gold, the bank valued its gold holdings at SFr15 291 per kilogram, its market value as of April 28. Under the old legislation, gold had been fixed at SFr4 595.74 per kg. The SNB will revalue its gold quarterly as it does for all other assets, with the next adjustment on June 30. The SNB, like many other central banks, is in the process of selling some gold reserves. It is one of 15 European central banks which last year agreed to limit their combined sales to 400 tonnes per year over five years in order not to destabilise the market. news.24.com