Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ItsAllCyclical who wrote (71360)	6/8/2001 7:04:42 PM
From: Stephen O	Respond to of 116770

NEW YORK -- Anyone doubting that something odd is afoot in the gold market got another wake up call on Friday when bullion rocketed to an intraday high of $274.80. It closed the New York spot session at $273.30 bid, a gain of $7.30 or 2.74 per cent on the day for the best price in ten days. - Dealers pinned the gains on the combination of thinly traded market, strong fund buying and the expiration of Comex options. Comex August gold futures were up $7.20 (2.7%) to $274.50 per ounce with an intraday high of $275.5 an ounce. The fund buying gained further momentum when stop-buy orders kicked in after bullion breached $270 an ounce, moving comfortably above the 200-day moving average of $267.60. The surge started shortly after midday in New York as funds juggled buying and short covering. Friday New York trade has become a key factor in gold price movements that have become increasingly volatile since April. Usually the close of the week is also the end of any uptick in bullion prices that may have occurred earlier in the week. Gold began its current phase of unrest on May 15 when information came to market showing that funds were accumulating gold and that loan structures were lengthening. The UK Treasury gold auction was also oversubscribed that week, contrary to expectations. On May 18, a Friday, gold began an unprecedented run that took it to the brink of $300 an ounce as Comex announced dealers had gone long for the first time since July 2000. That injected new life into gold equities which had lain dormant for months under the weight of a steadily sinking gold price. The rally eventually faded as many gold bears had predicted, but held better than its critics though possible. The rally was effectively over on May 25 when unfounded rumours of Russian gold sales scattered the market sending metal prices below $275 an ounce. Friday close out of Comex gold and silver options will no doubt draw calls for caution before buying into the rally. Nevertheless, that such a scramble should ensue so close to the expiration suggests that the gold market is still churning and has yet to settle down from May's spike and April's steady run up. Technical analysts remain convinced that gold is at the start of a new bull phase. Miningweb contributor Issy Bacher believes the positive trend remains intact provided gold doesn't slip too far below $268 an ounce. Clive Roffey is also upbeat and is sticking to forecasts for gold ending the year at between $350 and $385 an ounce. Gold was fixed in London at $267.25 and $267 for the morning and afternoon sittings respectively. Gold lease rates did not precede today's move which may be cause for further caution. 3-month rates were bid at slightly more than 2 per cent, down from a peak of 2.35 per cent on 25 May. Save date: 8 June 2001 4:32 PM 232 m1.mny.co.za