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To: pater tenebrarum who wrote (93136)	4/11/2001 9:51:35 PM
From: John Pitera	Read Replies (1) \| Respond to of 436258

Heinz, that makes as much sense as anything.... CFTC non commercial shorts creeping back to the Feb levels.. On Friday, The CFTC Commitment of Traders showed net non commercial shorts at 51,314 contracts up a bit more than 18,000 contracts from the previous reports and again beginning to approach the 66,713 figure in late February. Last week it was revealed that the Austrian National Bank had been the seller of 30 tonnes of gold last week but this had little impact. Gold also generally ignored the strong rally in U.S. equity prices just it had generally ignored sharp declines. The focus of the precious metals markets remains on the bearish fundamental implications of a strong U.S. dollar which has recently reached a new record high against the Australian dollar, a 2 = year high against the yen and a new high for the year against the euro. As we have indicated in the past, as the dollar strengthens in value, the inflated commodity prices in terms of foreign currencies could encourage selling by producers and slow end user buying. Consequently, the price implications of a strong dollar are negative for metals. Friday's CFTC COT reported showed that the non-commercial net short position for COMEX gold was 33,304 contracts as of March 27, down from nearly 38,000 contracts a week earlier. It appears the nearby gold futures is headed for a test of 20-year low of $252.50 set in 1999, especially if the dollar remains strong. However, a continued rebound in lease rates suggesting reduced liquidity should limit downside potential.