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

To: d:oug who wrote (86131)	5/31/2002 1:42:40 AM
From: marek_wojna	Read Replies (1) \| Respond to of 116822

The world must be coming to the ends. JPM joining gold bulls. Keep like that and instead bashing the bullion down before B.o.E. auction, we might see stampede over there. << .P. Morgan Joins Ranks of Gold Bulls Thursday May 30, 4:25 AM EDT LONDON (Reuters) - U.S. investment bank J.P. Morgan became the latest to join the rank of gold bulls on Thursday, predicting a higher bullion price this year and next. J.P. Morgan forecast gold would average $305 an ounce in 2002, higher than its previous forecast of $290 an ounce, and $325 an ounce in 2003 rather than $310 an ounce. "We believe there is more upside opportunity in the gold price rather than downside risk in the medium term due to inevitable reduction in gold supply as mines age," its gold analyst John Bridges said. "In our gold equity research we will increasingly be including...higher gold prices into our valuations allowing more bullish investors to make realistic decisions on the upside for gold equities," Bridges said. Spot gold was at $324.60/325.10 an ounce in European trading, having risen on Wednesday to a high of $327.30, a level not seen since October, 1999. It has averaged around $297 an ounce this year, up from $271 an ounce in 2001. Gold has been fired higher mainly because of dollar weakness and tensions ranging from Kashmir to the Middle East and fears of a terror attack on the United States mainland. Prospects of declining global mine production and a reduction in forward selling by leading mine firms has also fanned gold higher. These culminated in gold being set or "fixed" in London on Wednesday at its highest level in more than 4-1/2 years. Gold analysts have raised their price projection for the precious metal this year because of a bullish cocktail of strong market fundamentals and political uncertainty, a Reuters survey of analysts showed this month. A survey of 12 analysts forecast an average gold price of $306 a troy ounce, up from a forecast of $290 an ounce in a similar survey conducted last January.