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To: maceng2 who wrote (563)	1/29/2004 1:22:09 PM
From: maceng2	Read Replies (1) \| Respond to of 1417

Gold prices under pressure By Neil Dennis Published: January 29 2004 12:15 \| Last Updated: January 29 2004 13:57 news.ft.com Gold prices eased back slightly on Thursday, held hostage by currency fluctuations as the dollar rallied against the euro following a surprise change in the wording of the US Federal Reserve's policy statement. On Wednesday, at the culmination of its two-day interest rate-setting policy meeting, the Fed left rates unchanged at 1 per cent, but tweaked the accompanying statement, substituting "the committee believes it can be patient in removing its policy accommodation", for the previous "policy accommodation can be maintained for a considerable period". The rephrasing contributed to a two-cent rally for the dollar against the euro, and a subsequent weakening of bullion prices on Thursday. "Hints of a policy change towards interest rates by the US has put gold under pressure this morning after the yellow metal closed at the top end of its recent range," said James Moore, analyst at TheBullionDesk. The dollar's rally pushed gold prices back to $408 during Asian trade, but bargain hunters prevented further losses, and by late morning in Europe, the metal stood at $410.25, from the late New York fix of $414.50/414.90. Brent crude prices eased back on Thursday, as fears about shortages in the US, caused by the recent adverse weather conditions, faded. On Wednesday the US Energy Information Administration said that inventories of heating oil would be adequate to meet demand through February, even if temperatures remained very cold. The statement eased fears of short supply of heating distillates in the midst of a severe cold snap in the north-eastern states even though the IEA reported crude stocks had fallen to fresh 28-year lows. Meanwhile, Opec ministers kept traders guessing ahead of the cartel's meeting on February 10. On Thursday, Purnomo Yusgiantoro, the Indonesian oil minister and president of Opec said there was no consensus among the organisation's ministers on whether to maintain current official output limits. In recent sessions, prices have fallen as oil ministers have expressed the view that Opec is unlikely to cut official production limits of 24.5m barrels per day. In late morning trade, front month Brent crude futures were down 14 cents to $29.63.