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Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: 4figureau who wrote (893)	8/8/2002 10:32:20 AM
From: 4figureau	Respond to of 5423

UBS Warburg: Gold traded higher yesterday as the metal continues to recover from the recent speculative inspired sell-off and buoyed by news that Newmont will continue to reduce its hedgebook in coming quarters. Volatility in FX and equity markets makes short term direction in the gold price hard to call. Gold: News: Newmont reported quarterly results yesterday and revealed that it had reduced its hedgebook by 1.1 million ounces (including committed and uncommitted positions). Since the merger the hedgebook has been reduced by approximately 1.5 million ounces and that over the next six quarters Newmont’s acquired hedgebook will be reduced by a minimum of 2.2 million ounces, although the company is actively and opportunistically looking to reduce the hedgebook at an even faster rate. Trading: After one European bank was a noted buyer of XAUAUD in European trading, gold headed higher into and after the New York open. One large US investment bank was a noted buyer and once gold traded through the recent high around $310 spot, buystops were triggered and the metal rapidly jumped higher before the US bank turned a seller. A late rally in the EUR sparked another rally in gold and took it up to $315 before the buying ran out of steam and gold edged a little lower, but still posted a good close. in Asia, good looked to consolidate although light selling interest was seen from the trade and Tocom names, which led gold to drift lower. In early European trading further light selling pressure was seen although gold then bounced from just above $312.50 as some buying interest was seen. View: The move in gold yesterday appears to have been driven by technical rather than fundamental factors, although the fact that the metal managed to hang onto almost all of its gains is quite positive. We believe that the risks in gold are skewed to the upside. 1m 3m 6m 1y 3y 5y 10y USD/XAU Impl Opt Vol (Mids) 16.25 15.0 14.4 14.0 12.6 12.2 12.1 Gold Fwd Rates 1.71 1.58 1.34 1.11 1.81 2.57 3.67 Silver: Trading: Silver followed gold higher in US trading with mostly bank buying behind the move although commission house names were seen as sellers near the close. Silver remained View: Silver looks set to move higher but needs to break the $4.70 level while $4.60 is providing decent support.