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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 (2899)	1/24/2003 9:12:09 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

UBS Warburg: Gold continues to look set to make further gains and with the 27th January UN weapons inspection-reporting deadline looming large, this is hardly a week to go home short gold or long the US dollar. Consequently, we expect gold to at least hold onto its gains into the end of the week if not move higher still. Gold: Options: Gold options finally reacted to the steady move higher in gold yesterday with 1-month volatility up 1.3 vol and dates out to five years reacting to a lesser extent. At one point near the highs in gold there were no offers for short (sub-2month) gold options. Although this was hardly a panic, this is the first sign that there is some discomfort in the gold options market and could point to further sensitivity if the recent highs are retested and breached soon. Trading: In New York, speculative buying in April gold combined with pre-fix buying gave a gold a lift to $365/oz, the overnight high. Decent two-way business tool place around that level but gold remains well bid and eventually traded up towards resistance at $367 / 368 where very good selling was seen, leading to gold falling back to $363.50 where supportive buying was found. For the rest of the day gold traded between $364 / 365. In Asia gold had a much quieter session than was seen on Thursday morning with Tocom volume about one-third of the previous day’s activity. Early selling, reportedly from New York, saw gold under early pressure b efore good two-way trade was seen between $363.50 and $364.50. Gold traded higher towards the end of the session and remained firm in early European trading. View: Whilst geopolitical tension continues to rise it is hard to make a case for a retreat in the gold price, especially if the US dollar continues to weaken. Silver: Trading: In New York, silver had a very volatile session. After fixing at $4.85 decent buying was seen from one US professional and silver then traded up to the highs but when gold came under pressure traded fell all the way down to the lows with US banks seen as the major seller. In Asia, silver saw lighter than recent activity although Tocom GP traders remained buyers of silver. View: Silver will benefit from the weaker US dollar (as will all dollar-denominated commodities), but since silver’s applications are largely industrial in nature the metal will continue to be hit by slowing economic activity. thebulliondesk.com