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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (19806)	9/9/2003 8:40:15 AM
From: Stephen O	Read Replies (2) \| Respond to of 39344

Gold pundits remain optimistic As Gold toys with the $380 level mid-morning London, a broad consensus appears to be forming among market professionals for a move well beyond recent trading highs. At 11:40 BST spot gold was quoted at $379.80/380.40 a troy ounce, while the euro was quoted at $1.1126/29. A source of constant nagging concern among Gold market pundits, the record speculative long position in New York gold futures appears to have been grudgingly accepted as sustainable in the short to medium term by many observers overnight. Fresh money has continued to flow into the precious metal as investors sought to diversify their portfolios, forcing a rethink of the markets' long held reference points for judging the scale of the speculative position. UBS Warburg in a report this morning added; “An all time high in spec longs does not necessarily point to an immediate sell-off in gold” Meanwhile, Gold gained additional support from a strong Euro as forex market participants were careful about going overly long on the dollar amid nervousness ahead of the September 11 anniversary.. Regional reports also pointed to continued healthy demand: “We're seeing buying from the Japanese, but also locally," said a Hong Kong based trader who believes gold will break overhead resistance at $379 that has thus far held firm. "With all the safe haven interest lately, I'm targeting $380, maybe $385, by the end of the week," the trader said prophetically Similarly, ABN AMRO said in a client note that; “We will probably see more support ahead of Sept. 11 this week, and a break of $379 will see gold heading toward $390 reasonably smartly”. How long this mood of optimism will last all depends on the continuing influx of new money. In an interview with Mineweb, John Hathaway, manager of the $500 million Tocqueville Gold Fund said of the current rally, It’s very early days yet”. He drew particular attention to the new class of Gold Securities, such as Gold Bullion Limited, which trades on the Australian Stock Exchange and the eagerly awaited UK and US versions: “They’re going to draw money, physical money, into the gold market in a way that nobody can imagine,” In a report this morning, Standard Bank cited support levels of $375, $371 and $369, with key overhead resistance at $381.00. Dominic Hall – TheBullionDesk