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

To: Rarebird who wrote (53113)	5/22/2000 11:25:00 PM
From: Alex	Respond to of 116768

The Outlook For Gold Futures SUSIE GHARIB: The price of gold edged up a bit today. In New York trading, the June contract rose $1.60 to $276.20, but that?s still well below the $325 range where gold was trading in February. Joining us live now to talk about the outlook for gold is our colleague Melanie Lovatt, Senior Metals Reporter at BridgeNews. Hi, Melanie. MELANIE LOVATT, SENIOR METALS REPORTER, BRIDGENEWS: Hi. GHARIB: All right, so the Bank of England is going to be selling off a little bit of gold tomorrow. What kind of impact might that have on gold prices? LOVATT: Well, even if we don?t see any impact just after the sale it?s already done some damage. Gold prices fell to a seven and a half month low last week and that?s in part due the these sales. GHARIB: All right. So going forward, this Bank of England sale, it is important at all? LOVATT: I think it?s important because it?s one sale every couple of months, but people know when it?s taking place and it just hangs like a cloud over the market. GHARIB: Well, as I mentioned a moment ago, we had the price of gold up into that 325 range back in February. There are a number of factors, I guess, that have been pulling it down besides these sales. The strong dollar can?t be helping. LOVATT: No. The strong dollar is indeed a very big negative for gold and also another big negative is a very strong stock market. GHARIB: Well, it didn?t feel that way today with the way the stock market has been selling off recently, but that?s still putting pressure on the price of gold. LOVATT: Yeah. Gold got some respite today when the stock market came down. But, yes, it has been pressuring it strongly. GHARIB: So Melanie, of the people you?re talking to, what are they saying is the short-term outlook on the price of gold? Here it is at $276 now. Where do they see it going? LOVATT: Well, I think most people, unless there is a pullback in the dollar or the stock market, see it staying around that level. If there is a pull back in the dollar or in stocks to a greater degree than we?ve already had, then there was a chance that gold could reach the 320 level again. GHARIB: You know, not too many portfolios really have gold in it anymore. I mean it?s very unusual. Why should we be concerned about the direction of gold? LOVATT: Well, I guess the market has been good to everybody and gold is insurance. But, you know, even when things are going well, you really need to carry insurance and gold is insurance against some kind of calamity, like Y2K fears. People started investing then. GHARIB: All right. Well, thanks for giving us this update on the price of gold. We really appreciate it. And we?ve been speaking with Melanie Lovatt of BridgeNews. nightlybusiness.org