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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (29442)	2/6/2002 9:41:29 PM
From: dennis michael patterson	Read Replies (1) \| Respond to of 52237

I'm sure LOADS of people have gold in yen! I have a friend with a yen mortgage (interest only) on his London flat. He's a happy camper after 18 years

To: Square_Dealings who wrote (29442)	2/6/2002 9:41:47 PM
From: Paul Shread	Respond to of 52237

DJ. WSJ(2/7) Commodities: Gold Up Wed, Spurred By "Enron Effect" 2/6/2002 7:30:00 PM Feb 07, 2002 (ODJ via COMTEX) -- By Peter A. McKay Staff Reporter of The Wall Street Journal The gold market has begun to confirm what analysts have been whispering for weeks: The "Enron effect" is rivaling, or even surpassing, September's terrorist attacks in its ability to scare the public into more conservative investments. Since last Monday, as Enron Corp.'s meltdown and troubles at Tyco International and Global Crossing began to spur fears about widespread accounting irregularities, gold has jumped 7%, or $19.40, to $298.30 a troy ounce on the New York Mercantile Exchange's Comex division. It is up 9.5% from its post-Sept. 11 low. That compares with a gold rally of just 8% after Sept. 11 on a closing basis, culminating in a then-intraday high of $296 at Comex on Sept. 21. At the time, gold bugs crowed that the yellow metal's traditional role as an investor haven during times of uncertainty had been validated. While gold fell 80 cents during yesterday's session, it still is only slightly off its new post-Sept. 11 closing high of $299.10 on Tuesday. It did, however, hit new intraday highs above the psychologically important $300 level, which the metal didn't maintain. Gold's post-Sept. 11 gains quickly evaporated as the stock market quickly rallied, and so could the latest gold surge. Analysts believe the latest gains are more likely to stick, however, because accounting-related nervousness is more specific to the financial system and bound to drag out in a series of investigations, lawsuits and congressional hearings. In addition, fundamentals in the gold market itself are improving, including an end to the Bank of England's gold-selling program next month and a rollback in Japan's deposit-insurance program. "Any time you have a short-term shock to the financial system, like the terrorist attacks, gold may have a knee-jerk reaction," said George Gero, first vice president of Prudential Securities. "But this rally should have more staying power and more volatility." He said the volatility will come from the symbolic importance of the $300 threshold, which may trigger gold producers to place bearish hedges anytime it is breached. That happened late in yesterday's Comex session, reversing an otherwise bullish day, traders said. In other commodity trading yesterday: SOYBEAN OIL: Prices at the Chicago Board of Trade fell sharply on a surge of selling by speculative commodity funds, tied partly to technical indicators as well as to concerns that U.S. exports to China could be hurt by new regulations on genetically modified products that take effect March 20. The leading March contract dropped 0.42 cent, or 2.7%, to 15.25 cents a pound. HOGS: Prices fell in response to a fall in pork cutout values, weaker cash prices and selling ahead of the expiration of the February contract on Feb. 19. The April contract dropped 0.74 cent to 61.97 cents a pound. --- Cinthia Murphy contributed to this article. (END) Dow Jones Newswires 07-02-02