Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: 4figureau who wrote (2966)	1/27/2003 9:23:36 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

Gold tops $370 an ounce Precious metal at highest point in more than 6 years as U.N. weapons report awaited. January 27, 2003: 6:16 AM EST LONDON (Reuters) - Safe-haven gold bullion was in keen demand Monday, as investors lifted prices above the $370 an ounce level for the first time in six years, ahead of the release of the U.N. Iraq weapons inspectors report. Gold was "fixed" or set at $370.80 a troy ounce in London, its highest level since early December 1996. Spot gold traded at $370.50/371.50 an ounce by 5:42 a.m. ET, having peaked at $372.55 an ounce earlier, but up from the $369.10/369.90 close in New York on Friday. "Hawkish comments from Colin Powell and apprehension ahead of Hans Blix's presentation to the U.N. Security Council today will keep the gold pot boiling," Standard Bank London said in a report. The precious metal was also boosted by another sharp slump in stocks and dollar weakness, which plumbed fresh three-year lows against the euro. "This week could easily see further gains for gold, with a possible test of $385 as a result of today's meeting," James Moore of TheBullionDesk.com said. Firm levels in Europe followed on from overnight in Asia, where Tokyo gold futures similarly bolted towards six-year highs, with December gold up 22 yen at an intraday high of 1,405 yen per gram -- a level not seen since April 1997. "The possibility of an Iraq attack is increasing day by day, so we can expect a lot of demand from Japanese private holders," said Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo. War premium Iraq war jitters have driven gold consistently higher this year. The precious metal, which acts as an insurance policy at times of looming war, fragile stock markets and a weakening dollar, is 34 percent higher than at this time last year. The first in a series of key events takes place later on Monday when U.N. arms inspectors deliver a crucial report that could determine whether Washington declares war on Baghdad. The United States has made clear it will go to war alone if it cannot muster support among a deeply divided international community. The arms inspectors, Hans Blix and Mohamed ElBaradei, will appear before the U.N. Security Council, with Blix, in charge of ridding Iraq of chemical, biological and ballistic arms, expected to be critical about Iraq's cooperation but not come to a conclusion whether Iraq is rebuilding its arsenal. Blix is scheduled to speak at 10:30 a.m. ET. Another focal point for the market will be President Bush's State of the Union speech Tuesday to see if a U.S.-led attack is imminent. "Whilst geopolitical tension continues to rise, it is hard to make a case for a retreat in the gold price, especially if the U.S. dollar continues to weaken," said John Reade, precious metals analyst with UBS Warburg. Later in the week, the U.N. Security Council will meet Wednesday to discuss the weapons inspectors' report and on Friday, British Prime Minister Tony Blair will fly to Camp David for talks with Bush. Some traders felt that any signs of delay to the start of a possible conflict could lead to a pull back, although the majority were looking for much higher prices. "...we do think an upside target could begin with a "4" in front of it. After all, given that gold has risen by $30 in just six weeks, it is certainly conceivable the gold could be challenging the peaks of the of the 1993 and 1996 rallies before this quarter has ended," Kamal Naqvi, precious metals analyst for Macquarie Bank said. money.cnn.com