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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 (2988)	1/28/2003 9:51:50 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

UBS Warburg: Yesterday’s testimony from UN weapons inspections to the Security Council proved to be an inconclusive event for the gold market. Whilst it is clear that Iraq is hardly bending over backwards to help the weapons inspectors, no prima facie evidence of Iraq’s possession of weapons of mass destruction were presented. Clearly more time for further weapons inspection is required and as such the chances of an imminent US attack have receded, we believe. This may prompt some profit taking in gold. Gold: News: Lihir Gold announced that it has increased its gold reserves by 15 percent or 2.2 million ounces to 16.7 million ounces following a major review of its deposit on remote Lihir Island. The move also lifts total resources held by the company by 19 percent, or 6.5 million ounces, to 41.1 million ounces, Australia-listed Lihir said. The company has hedging of 2.1 million ounces, which currently represented 12.9 percent of reserves, Lihir said. Trading: In New York gold had a wild session ahead of and after the testimony by weapons inspectors to the UN Security Council. Speculative profit-taking after the opening bell saw gold weaken by $4/oz and then turned quiet during the testimony before fresh buying was seen. Gold traded as high as $373 which had been the high in European trading but it failed there for a second time and fell back to $368.50 in choppy trading before firming a dollar on US bank buying into the close. Gold traded lower in Asia on Tocom GP selling although buying interest was noted around the $368 level. The yellow metal has remained weak in early European trading as equities and the dollar staged a mini-rally. View: After the inconclusive testimony by UN weapons inspectors yesterday further weapons inspection appears inevitable. After the rapid increase in the gold price over the past two months a period of consolidation is looking increasingly possible. President Bush’s State of the Union address this afternoon may give clues regarding the near term intentions of the US administration; the ultimate goal of the US government remains, however, absolutely clear. Silver: Trading: In New York, silver came under early professional selling from European banks and this took silver down to $4.80 briefly before some lurking buying arrested the decline in silver. After the UN speech silver rallied to the mid $4.80s and then remained quiet for the rest of the session. 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