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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 (3176)	2/6/2003 10:06:53 AM
From: 4figureau	Read Replies (1) \| Respond to of 5423

UBS Warburg: First round of profit taking in Gold this year could be taken as chance to enter or renter the market. Trading: After the opening bell couple of funds started to offer Gold down and no buying emerged. With C. Powell starting his speech to the U.N. gold settled around at 382.50/383. On fresh fund selling gold lost a stunning 6 dollars in 2 minutes dropping to a low of $375.50/376.50. As one US Bank was a good buyer down there, gold managed to rebound to $381.50/382.50 again. With stocks turning into positive territory and Euro coming under pressure gold got sold hard again by funds and US banks. This time it took it down to $372/373 where it stayed until access selling took gold lower for the Asian session, which was back into a small trading range between $368.75 and $371.75. Back to an orderly market gold drifted higher over the $370 mark and Europe saw some first buyers, as it was able to hold below $370. Forwards: Around the lows, light borrowing, not seen for quiet a while came into the forward market. Options: Volatility’s are still wide and high because of the size of the movements rather than the absolute spot level. View: Uncertainty is still one of the dynamics behind Gold, now focusing for the next main event around the Feb 14 Th. Gold is as well following closely the stand-off over North Korea’s nuclear program. We take this profit taking as a healthy correction, but the market will stay nervous and will need a couple of days to digest the recent move. Silver: Trading: On the back of Gold, Silver opened on the highs and started to move lower to$4.85 where it held. With Gold bouncing back, silver reached the $4.92 level again before then finally getting sold off by most inter-bank names and commission houses. In very poor liquidity silver stopped around $4.82 to take a breath. Towards the close one US bank started to push for the stops and silver went further south to a close of $4.76/77 with sizeable bids coming in after the stops were out of the way. Silver then had a subdued session during the Asian hours with good support seen around the $4.74 level. Europe started and stayed at $4.77/79 taking its clue from further Gold moves. View: After the false break out of yesterday, silver is back in the $4.70-$4.90 trading range, always having one eye on Gold. Silver should further 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