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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: Al Collard who wrote (7485)	3/29/2002 1:19:12 PM
From: brian krause	Read Replies (1) \| Respond to of 11802

Hi Al, at what price would you consider TVX to be breaking out? I am hoping that if it passes 1.25 it will run to 1.50 or better as I don't see it having any resistance between there. Are you seeing support at 1.04 as also being it's 200 day moving average which has turned after falling for years? I guess it all depends on what the POG does. The following is some Reuters commentary. NEW YORK, March 28 (Reuters) - COMEX gold eked out another gain on Thursday, consolidating before a long-weekend amid increasing confidence that its surge this week confirmed a change in fortunes after decades of weak bullion prices. What I'm hearing,'' said a bullion dealer, ``is that there are people interested in this market that haven't been interested for years. So it seems to have legs.'' Active June gold (0#GC:) rose 40 cents, settling at $303.70 trading between $305.80 to $301.50. U.S. financial markets will be closed for Good Friday and London will be closed Friday and Monday for Easter. The contract soared $5.50 on Wednesday, hitting its highest since Feb. 11 as speculators piled into the move. The Feb. 8 two-year high at $309.30 is now squarely in the cross hairs. The market calmed down after Wednesday's surge as players prepared for the public holidays. But market experts say positive technical factors and supply/demand trends seem to be aligning to help gold escape a downtrend in place since the yellow metal topped above $800 an ounce in 1980. It may be premature to call a major turn in fortunes given that so many rallies have failed in recent years as the market digested regular sales from central banks and producer hedges. Indeed the market is still $35 below the spike highs near $340 of late 1999, after European central banks agreed to limit their sales. But market sentiment toward gold has been improving since late last year, based on ravenous safe-haven buying in Japan, low U.S. interest rates and the trend toward reduced producer hedging in the forward markets. The power of Wednesday's rally took the market by surprise. There was talk that one big momentum fund, which executes trades based on computer signals, was behind the waves of investment bank buying and the stops that were executed once gold moved above $300/$301. The $300 level is now psychological support. Trade houses continued to nibble at the lows with funds also light buyers, though at least one big dealer was leaning on the market. There was some worry that Japanese investors will continue to buy when the rest of the market is out, because Tokyo markets will be open Friday and Monday. TOCOM yen-based gold futures rose to seven-week highs on Thursday. Dealers expected the rally to continue, after a lull for year-end book squaring Friday, once the new fiscal year begins on Monday. The benchmark February 2003 contract rose 23 yen to 1,285 per gram. A contract high at 1,289 was the priciest on a continuation basis since Feb. 8, when a weak yen, jitters over Japan's financial health and an ailing stock market drove futures over 1,300 yen. ``Yes we are saying a twenty-year bear market in gold is over, provided the Bank of Japan sustains their easy money policy,'' wrote Gregory Weldon, a consulting analyst for Prudential Securities, in his metals commentary Thursday. Weldon said he believes the yen will start to tumble next week after year-end domestic repatriation out of foreign assets disappears as a support for the currency. That will encourage Japanese investors to buy more gold futures, bars and coins to protect their wealth.