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Strategies & Market Trends : Groundhog Day -- Ignore unavailable to you. Want to Upgrade?

To: Alan Smithee who wrote (99)	4/4/2002 7:06:21 PM
From: MulhollandDrive	Respond to of 6346

DJ. INTERVIEW:Gold To Test $350 On Covering, Strife: Adviser ------------------------------------------------------------ Story Filed: Wednesday, April 03, 2002 1:17 AM EST TOKYO, Apr 03, 2002 (ODJ Select via COMTEX) -- By Jim Hawe (Dow Jones) - After breaking through the key $305-an-ounce resistance level overnight in New York, gold could now shoot for $325 and then $350, said John H. Mesrobian, president of Virginia-based Constantinople Advisors. "Many hedgers, bullion banks and shorts are exposed to gold breaking above $305. Gold taking out this level will put these bullion banks and hedgers in a panic, for their positions will be under water. In the end these shorts will have to cover and they will cause some spikes along the way," he told Dow Jones Newswires in a recent interview. Mesrobian said Constantinople Advisors, which advises corporate and individual investors on currencies, sovereign bonds, gold and other commodities, has issued a "multiple spike alert" for the gold market. "Gold could see a $25 to $50 move at any time, especially in these unstable political times. We have problems in the Middle East, Afghanistan, Pakistan and other places," he said. Mesrobian is also predicting a further rise in oil prices, which could help gold as these two commodities have historically moved in step. "We expect oil to push through $30 or $32 a barrel based on the current state of the markets and other conditions. We would add that if there is a war or if (Yasser) Arafat is killed, then oil prices will shoot much higher, even past the $40-mark," he said. Mesrobian sees a strong appetite for bullion in the Asian region, especially among Japanese investors. "As the yen continues to weaken you will see the Japanese buy more gold. Watch the Y147.50 area. If the yen breaches this level it will drop a lot more, and then watch the gold market," he said. The U.S. dollar was quoted at Y132.70 late Wednesday in Tokyo, down from Y133.58 Tuesday. "We were told over a year ago by a well-known Japanese investor that the Japanese will give up on both the yen and dollar at some point and start buying more gold. This move will be slow at first and then speed up," Mesrobian said. He recommends buying shares in some of the unhedged gold companies that will be able to take full advantage of any rise in the gold price. Specifically, Mesrobian likes Newmont Mining Corp. (NEM), GoldField Corp. (GV), Goldcorp Inc. (GG) and Glamis Gold Ltd. (GLG). Constantinople Advisors, however, doesn't recommend any gold companies that have significant exposure to hedges and derivatives, such as Barrick Gold Corp. (ABX), Placer Dome Inc. (PDG) and Ashanti Goldfields Co. Ltd. (ASL). -By Jim Hawe, Dow Jones Newswires; 813-5255-2950; jim.hawedowjones.com Copyright © 2002, FWN Financial News, all rights reserved.