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

To: marek_wojna who wrote (73460)	7/14/2001 9:36:12 PM
From: lorne	Read Replies (3) \| Respond to of 116984

Gold Fundamentals Still Strong S&P is positive on select gold mining stocks because of lower output, weak financial markets and increasing demand for the metal Gold futures -- and stocks of gold mining companies -- sold off after Wednesday's Bank of England auction of gold reserves. S&P believes the recent drop in the price of the metal - and of stocks of producers -- reflects lower lease rates and a sell-off in the Chicago CRB Commodities Index. S&P thinks a break below the recent low price of $252 per ounce reached in August 1999 is unlikely, and that any such break is unsustainable since the current price is some $100/oz. below replacement cost. Fundamentals for gold mining stocks, and the metal itself, are positive on lower output, weak financial markets and a deficit in supply versus demand. S&P is still positive on selected gold stocks and has 4 STARS (accumulate) recommendations on Barrick Gold (ABX ) and Newmont Mining (NEM ). S&P also has 3 STARS (hold) recommendations on Homestake Mining (HM ) and Placer Dome Inc. (PDG ). businessweek.com