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

To: IngotWeTrust who wrote (83930)	3/29/2002 2:17:09 PM
From: brian krause	Read Replies (1) \| Respond to of 116960

Why? I doubt they are going to help their previous allies out. 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.

To: IngotWeTrust who wrote (83930)	3/29/2002 9:05:24 PM
From: brian krause	Read Replies (3) \| Respond to of 116960

But Bundesbank's gold sale won't happen will it. COMEX gold holds firm, capped by specter of Buba NEW YORK, March 25 (Reuters) - COMEX gold ended a tad firmer on Monday, cooling from Friday's rally as caution increased before the upcoming holiday and the Bundesbank dangled the prospect of German gold sales over a central-bank-wary market. ``One symptom of a bull market is when the market ignores negative news,'' quipped Leonard Kaplan, president of Prospector Asset Management. Friday's fund buying spilled over into Japan early Monday, where TOCOM gold futures sped to a 15-day high as the tumbling yen continued to flush Japanese investors into safer havens. But it stalled in New York, where outright activity was limited before the Good Friday holiday which falls a day after books must be squared for the end of the quarter Japan's fiscal year on Thursday, which is also first notice day for April gold. April gold <0#GC:> rose 10 cents to $297.70 an ounce, trading $296.90 to $298.60. Estimated volume was 75,000 contracts, more than half of which was 21,476 switches of two lots each as April positions were rolled to next-active June. ``I was pretty impressed with how well gold held up,'' Kaplan said. ``Usually, if you look at gold after a big rally you get some setback. We saw none all day, probably due to the weakness in equities and weakness in the yen.'' The active contract ended up $4.50 on Friday, when stop-loss buying above $295 vaulted it out of a two-week range and raised hopes that the futures were headed for another test of the $300 psychological level. But gold was capped after Ernst Welteke, the Bundesbank president and a council member of the European Central Bank, was quoted in an interview with newspaper Frankfurter Allgemeine Zeitung saying he could not rule out converting some of Germany's 3,500 tonnes of gold reserves into other securities. ``It doesn't help,'' said James Pogoda, a vice president of precious metals at Mitsubishi International Corp. ``Of course nothing can happen until '04. But I think it still does damage the psyche.'' Welteke's comments echoed his remarks five weeks ago and dealers say that the Bundesbank's hands are tied by the 1999 agreement among European central banks to sell no more than 400 tonnes a year at least until Sept. 2004. The UK recently wrapped up its public bullion auctions under the so-called Washington Agreement, leaving Switzerland and the Netherlands as the main users of the quota. It is not clear if Switzerland -- which has been quietly selling about one tonne of bullion per day as it slowly reduces its reserves by half to about 1,300 tonnes -- will increase its sales to fill the void left by Britain or if another nation will take up the slack. Some see no scope for the Bundesbank, which long stood against selling, to start until after September 2004, when the agreement will either expire or be extended in some form.