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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (95487)	6/24/2003 4:12:22 PM
From: Lucretius	Read Replies (2) \| Respond to of 116790

like i said... lol

To: re3 who wrote (95487)	6/24/2003 4:13:16 PM
From: Rocket Red	Read Replies (1) \| Respond to of 116790

JOHANNESBURG - Gold tanked as the New York COMEX trading session opened last night, tumbling below the key $350/oz level to trade as low as $346,40/oz. Although most market players had expected a repeat performance of Monday’s market activity, when the metal was strongly supported at $350,50, the euro weakened to levels close to those it had last seen in mid-May at $1,1505, and took gold with it. The euro now looks vulnerable to a more robust dollar, and this is not good news for gold. South African gold stocks took a pounding as gold sank from levels around $353/oz as the South African trading session started to $346/oz as New York began trading the metal at 16h00 our time. The stronger rand also helped the JSE Securities Exchange SA’s gold index close almost 5% lower at 2288,08, led lower by a 5,5% drop in Durban Roodepoort Deep shares to R19,75. Harmony shares lost nearly 6% to trade at R106,67, AngloGold was 4,1% lower at R240,75 and Gold Fields shares gave up just over five percent to trade at R91,01. The euro was last at $1,1509 to the dollar. The single currency was last trading at R8,98, and the rand was looking healthier than it did yesterday morning at R7,75 to the dollar after a steady strengthening throughout the day. Several large funds wound up their long gold positions during the New York trading session on Monday, hammering the metal down to the crucial $350,50/oz support level. Despite the intense pressure, the metal found ample support between $350,50 and $351/oz, and recovered to trade around $353/oz by mid morning South African time today. But the pressure from institutional investors looks to continue, as traders said several funds have bought put options over gold, signalling their negative view on bullion. A Johannesburg based gold trader said technical indicators were pointing to a more bearish outlook for gold, but he was loath to go as far as saying that the bull market is over. Three or four months ago gold displayed a strong correlation with the performance, or non – performance of US equities, but the trader said the euro had replaced stock markets as gold’s primary driver. “Over the last few months a lot of gold traders have felt more like euro traders,” the trader said. The euro has taken a beating over the last few weeks as US equities have picked themselves up. The resultant inflow of capital into the US has supported the dollar, which traditionally hurts gold. There is also a feeling in global markets that the US economy may be stabilising, and this, could also prop up the dollar. Gold should find support at levels under $350/oz, as investors, particularly in Asia, see value in the metal at these levels. Traders also said gold could find support around the $335/oz level, as producers may see value in buy backs at these levels.