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: Gary H who wrote (83549)	3/20/2002 3:26:21 PM
From: long-gone	Respond to of 116815

Monday March 18, 3:39 pm Eastern Time COMEX gold ends higher, focus on Japan's weak yen NEW YORK, March 18 (Reuters) - COMEX gold rose on Monday in spillover buying after a sharp fall in the Japanese yen, brought the Japanese investor back into the safety of the precious metal. ``It's not only the Japanese. We're finding very good physical buying all around -- India, the Middle East and so on,'' said Ian MacDonald, head of bullion trading at Commerzbank. ``The physical buyers have become accustomed and accepted the higher prices now.'' ADVERTISEMENT Trade house buying at the open set the tone for April gold <0#GC:>, which ended $2.20 at $292.30, exactly reversing Friday's $1.10 loss. Monday's range was $289.90 to $293. But futures trade was relatively quiet in New York, where April-June rollovers were a good chunk of the estimated 24,000 lots turned over. There were 2,656 switches, each comprising two contracts. Spot gold closed at $292.00/2.50, up from $289.80/0.30 at Friday's close. Gold's late fix in London Monday was $292.05. MacDonald said $290 looked like solid support, but added there was plenty of resistance in the high $290s. A spike in the dollar above 130 yen sent Japanese investors running to chase yen-based futures higher, reminiscent of their gold buying early this year as insurance protection against a weak currency and shaky Japanese banking system. Many of these had been lightening up gold positions in recent sessions as the U.S. economy showed copious signs of recovery and the Dow Jones industrial average and Tokyo's Nikkei stock index moved higher. ``If the Japanese were large buyers of gold as the yen fell in value, then I would believe that prospects are excellent that we will again see a repetition of this event, and perhaps even an acceleration,'' wrote Leonard Kaplan, president of Prospector Asset Management in a market report. ``Nothing has substantively changed in the economic fundamentals in Japan.'' Gold prices were little deterred in front of Tuesday's Federal Reserve meeting amid predictions that a revived U.S. economy will shift decision makers away from the easing policy that last year helped restore a shine to gold by shrinking the contango and reducing the incentive for producers and speculators to sell. After its 11 easings totaling 4.75 percentage points in 2001, few expect the Fed to raise its target for the benchmark federal funds rate from its present 1.75 percent soon. But with ample evidence that manufacturers, builders and consumers are responding to the flood of liquidity, a growing number of Wall Street forecasters expect the Federal Open Market Committee to change its posture Tuesday, stating that the risks to the economy have shifted away from further weakness. ``Normally shifts from easing to neutral would be negative for gold. I think gold is trading pretty much independently of Fed activity right now,'' said Refco Inc analyst James Steel. COMEX May silver <0#SI:> rose 1.0 cent to $4.503, trading $4.49-$4.53. Spot silver was indicated at $4.49/51, up from $4.48/50 late Friday. The fix was unchanged at $4.485. Platinum was also supported by yen-related Japanese buying and hopes for a resurgence of industrial demand. NYMEX April platinum <0#PL:> rose $3.80 to $517.20 an ounce. Spot platinum was last quoted at $513/518. June palladium <0#PA:> rose $5 firmer to $374 an ounce. Spot palladium closed at $362/$377. biz.yahoo.com