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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (57244)	4/26/2002 2:26:00 PM
From: martin001	Respond to of 99280

ODJ NY Precious Metals Review: Gold Surges On, Due Higher -- Fund Buying, Producer Buy-Backs Main Source Of Drive -- Next Targets Seen As $314, $320, $325 New York, April 26 (OsterDowJones) - Comex June gold futures made fresh highs of $312.50 per ounce late Friday on further speculative and producer buying to end the day firmly poised for further gains next week, dealers said. The June contract ended the day at $312.10, up $3.50 on the day and $9.30 per ounce above where prices opened the week. Tensions in the Middle East, a weaker U.S. dollar against other major currencies and an uncertain outlook for U.S. equities all conspired to pave the way higher for gold, and decent levels of speculative fund buying kept the buy-side orders flowing through the day. Good levels of producer hedge buy-backs were also noted in some quarters as miners sought to withdraw their previously arranged forward-price commitments in expectation of being able to secure better prices later in the year. "We've been seeing quite a few hedges being bought back at $305 and $310 so they can sell them again at higher levels," one Comex floor dealer said. "Whether we'll keep seeing that as prices rise or not is a good question, as it's pretty expensive buying 5,000 lots of $310 gold, but if they're expecting $350 gold it could be a good deal," he said. Friday was also over-the-counter options expiry, which saw many holders of $310 puts nervously short-covering ahead of expiry in anticipation of having to meet any declarations by parties holding the option to buy gold futures at the $310 agreed. Dealers also said technically based funds were heavily involved through the day, banking on further gains over the coming days and weeks. They said the breach of the $310 mark brought into view upside targets from 2000 such as the $314, $320 and $325 levels. Charles Nedoss, at PeakTrading.com in Chicago, said he was looking for $314 to be the next big hurdle and that beyond there prices would quickly scurry to the $325 area. "I like what we've been seeing today and yesterday - higher highs and higher lows - so I think we're in good shape to test higher," he said. "I don't see too much between $314 and $325 so the rise from $314 could be pretty quick."