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

To: Crimson Ghost who wrote (55412)	6/28/2000 4:08:00 PM
From: Rarebird	Read Replies (2) \| Respond to of 116753

< We read this market differently> Obviously. You are quite consistent and a very devoted faithful committed bear. I question my principles and values. Moreover, I'm more pragmatic and will go long for short and intermediate periods of time. It has paid off for me to do so usually. I'm not a complainer or a whiner. Care to call me a contrarian indicator again, as you did last October? I won't be long for long here, though. I'm still very bearish on the equity market long term.

To: Crimson Ghost who wrote (55412)	6/28/2000 4:51:00 PM
From: Alex	Read Replies (3) \| Respond to of 116753

Gold Up 2.4% as Fed Keeps Rates Flat Jun. 28-MAR-- [B] NY Precious Metals Review: Gold up 2.4% as Fed keeps rates flat By Melanie Lovatt, BridgeNews New York--June 28--COMEX August gold futures ended up $6.80 or 2.4% at $294.30 per ounce on Wednesday after jumping to a two-week high of $294.80. Gold held onto its gains after the U.S. Federal Reserve said that it would keep interest rates unchanged. It had been driven higher ahead of the Fed's 1415 ET announcement on growing expectations the Fed would not hike rates. * * * After the announcement, gold had little time to react until the 1430 ET COMEX close, but there was little evidence of "buy the rumor, sell the fact" as it stayed strong in the last few minutes of trading. Gold had climbed throughout the day, with its impetus coming from expectations that the Fed would keep rates unchanged, although news that the South African Reserve Bank (SARB) had received a $500 million gold denominated loan provided another boost for the market. SARB governor Tito Mboweni said, "We think it is appropriate for South Africa to use this structure and send a positive message to the bullion markets and that the SARB is prepared to hold and add to its 4 million ounces of gold reserves while other central banks decide to sell their own gold reserves." (story .17074). James Steel, analyst at Refco, said that this development is positive for gold, but noted the primary focus was the Fed. No rate hike would "tend to weaken the dollar and would mean that the Fed is not so worried about inf lation rising," he noted. Alternatively, if the Fed had put up rates, it would have indicated it was vigilant against inflation and as an inflation-hedge asset, gold could have suffered. Higher interest rates also increase the costs of holding physical commodities like gold. In the gold runup stops were hit at the $288 and $292 level, traders said. They noted that funds and trade houses were buyers, with some of the locals caught short and thrown into panic mode. "Short positions are still fairly heavy, especially amongst commercials," Steel said. Market observers noted that heavy selling from large New York trade houses was notably absent, with some of these players now moving in as buyers, thus giving the market a lift. Steel also pointed out that there has been strong Asian gold buying, which is supportive. Whether gold can hold Wednesday's strong gains remains to be seen, although many are skeptical. Steel said that the dollar appeared to be holding up well. "Unless the dollar weakens or at least doesn't go up any further, it'll be hard for gold to maintain the rally," Steel said. Furthermore, he pointed out that over the last two years, gold has not managed to stay above $300 per ounce for more than a few weeks and at the most; it has managed only 4 weeks above this level. He suggested a cautious approach to gold as it moves towards $300, since it may see a return of producer hedging. Gold's rally was supportive across the precious metals complex, although silver's reaction was disappointing as it edged only marginally higher. July platinum jumped to a fresh 11-year high of $574.90 per ounce, continuing to attract speculators amid the tightening physical market conditions. In the news, Russia's Almazyuvelirexport (Almaz), which has been the country's sole platinum group metals (PGM) export agency, is expected to be unable to continue exporting PGM under long-term contracts to Japan after it sells its powerful U.S. subsidiary to Russia's largest PGM producer, Norilsk Nickel, analysts in Japan said on Wednesday. They said Almaz is unlikely to maintain sufficient long-term PGM supplies to Japan, as Norilsk is developing its own PGM export networks. (Story .2016) Meanwhile, Swiss customs officials Wednesday confirmed the import of 6,971 kilos of Russian platinum in May, marking the first sizeable delivery of the metal to Swiss markets in nearly a year. In Russia, the State Depository for Precious Metals (Gokhran) has been granted a very small export quota for platinum group metals (PGMs) in 2000 and is not planning to export any metals this year, Chairman of Gokhran and Deputy Finance Minister Valery Rudakov said Wednesday. He said that the market would not feel the absence of such insignificant amounts. Rudakov also said domestic palladium consumption was likely to rise soon due to the liberalization of the PGMs market (story .17090). SETTLEMENT PRICES --Aug gold (GCQ0) at $294.3, up $6.8; RANGE: $287.4-294.8 --Jly silver (SIU0) at $5.038, up 2.9c; RANGE: $5.005-5.04 --Jly platinum (PLN0) at $572.8, up $16.3; RANGE: $556-574.9 --Sep palladium (PAU0) at $660.25, up $6.10; RANGE: $650-665 SPOT PRECIOUS METALS PRICES: New York 1520 ET London 1205 BST Tokyo 0630 GMT Gold(KRCGL) 291.40-292.00 286.30-286.90 286.20-286.70 Silver(KRCSL) 4.98-5.01 4.93-4.95 4.93-4.96 Platinum(KRCPL) 575.00-585.00 565.00-575.00 566.00-574.00 Palladium(KRCPA) 642.00-652.00 647.00-657.00 645.00-655.00 End Copyright 2000 Bridge Information Systems Inc. All rights reserved. The Bridge ID for this story is 02333 (c) Copyright 2000 FWN futuresource.com