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

To: lorne who wrote (60644)	11/7/2000 8:37:19 AM
From: Enigma	Read Replies (2) \| Respond to of 116790

<<However the practical message that is sent to the market place when these positions are entered is that gold producers believe that the market for their product will continue to decline>> Dead wrong - the producers are hedging (part of) their production IN CASE the price of gold declines during the period - in other words they are securing the price for some of their production.

To: lorne who wrote (60644)	11/7/2000 8:49:50 AM
From: Alex	Read Replies (2) \| Respond to of 116790

Bank of England Sells 25 Tons of Gold at $264.30 an Ounce London, Nov. 7 ( Bloomberg ) -- The Bank of England said it sold 25 metric tons of gold at $264.30 an ounce in the ninth of a series of auctions to halve the U.K.'s gold reserves by 2004. The central bank sold 803,600 ounces at 55 cents above the price for immediate delivery in London at 11:30 a.m., when bidding closed. Offers were submitted for a total of 2.67 million ounces, or 83.4 tons of gold, making a bid-to-cover ratio of 3.3. Today's auction marked a reversal from the two previous sales when lackluster demand forced the government to sell bullion at a below-market market price. Demand for bullion at the auctions had steadily fallen, signaling a waning of investor interest. Demand at today's auction exceeded levels reached at three last auctions. Since July last year, the bank has sold 200 metric tons as part of a plan to shed 415 tons, or 58 percent, of its gold reserves and buy assets that offer a higher return, such as government bonds. At the last auction on Sept. 19, the bank sold 25 tons for $270.60 an ounce. On July 12, it sold 25 tons at $279.75 an ounce, after auctioning the same amount on May 23 for $275.25 an ounce. Nov/07/2000 7:28 ET For more stories from Bloomberg News, click here. ( C ) Copyright 2000 Bloomberg L.P.