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

To: goldsnow who wrote (3790)	12/5/1997 9:03:00 PM
From: goldsnow	Respond to of 116752

Asian Gold - Low prices could spark buying spree 02:49 a.m. Dec 05, 1997 Eastern Asian Gold - Low prices could spark buying spree SHANGHAI, Dec 5 (Reuters) - Falls that have taken gold prices to their lowest point in more than 12 years could spark a pre-Christmas jewellery buying spree in Asia, dealers around the region said on Friday. But the long-term outlook for the yellow metal might not be so buoyant as the impact from the financial crisis now gripping the region remains unclear, dealers and industry executives said. ''The problems in Southeast Asia will mean reduced purchasing power as the reduced strength of the currencies becomes obvious,'' said a source at the Chinese Gold and Silver Exchange Society in Hong Kong. Insecurity in Hong Kong and a weakened rupee in India, the world's biggest gold consumers, could see the bullion take a beating, he said. But in the immediate term, low prices were a boon for bargain hunters, dealers said. ''Prices at these levels will lead to greater interest in Hong Kong because people will want more jewellery now,'' said a dealer in the former British colony. ''This really is a very low level, so I think people will start investing in gold again,'' he said. A dealer in Singapore agreed. ''There's a lot of interest in the yellow metal now. We will probably see more buyers as a lot of companies are boosting their stocks,'' he said. On Thursday, premiums for gold kilobars in Singapore were indicated at 40 U.S. cents over spot London prices from 70-100 U.S. cents on November 26, traders said. Gold prices slipped to fresh 12-1/2-year lows on Thursday after New York and Asian markets digested the news that the Argentine central bank had cleared its vaults of gold. Also adding pressure to tottering sentiment was fresh selling out of Australia as the local miners sought some relief from falling prices by taking advantage of their domestic currency at a four-year low against the U.S. dollar. Hong Kong Friday midday spot gold firmed to US$286.60/287.10 per ounce from its opening price of US$286.10/60 per ounce. Hong Kong bullion opened at $286.10/60 an ounce against New York's US$286.00/50 close on Thursday and Hong Kong's previous close of US$289.70/290.20. Hong Kong dealers said they saw a softer tone in the absence of supporting factors, and put support around US$285. The moves to the lows came after the Argentine Central Bank announced it had sold 124 tonnes of bullion, apparently during the first half of this year. It was the first major outright sale from Latin America and disposed of virtually all of Argentina's gold reserves except for commemorative coins and medals. Analysts in Singapore said they expected gold prices to fall further amid expectations of more selling from European central banks. ''The gold market is going through a period of demonetisation,'' Steve Strongin, commodities researcher with Goldman Sachs told a news conference in Singapore on Thursday. ''The problem is you have many central banks selling and now you see more investors selling,'' he said, adding ''We see gold prices significantly lower ... for sometime.'' The Hong Kong-based source said the possibility that the European Central Bank could decide to hold up to 10 percent of its reserves in gold could give the market a boost. ((Dolly Aglai, Singapore Newsroom (65) 870-3305 Lynne O'Donnell, Shanghai newsroom (86) 21-6279-8544)) Copyright 1997 Reuters Limited. All rights reserved.

To: goldsnow who wrote (3790)	12/5/1997 9:08:00 PM
From: goldsnow	Respond to of 116752

Swiss ever slightly changing tone..deliberatly? "Earlier, reports from Switzerland also helped the tone, traders said. Swiss Finance Minister Kaspar Villiger said the Swiss plan to sell some gold reserves, announced in March this year, would see sales spread over seven years and would be coordinated with other central banks." NY precious metals end higher, gold finds support 05:23 p.m Dec 05, 1997 Eastern By Clive McKeef NEW YORK (Reuters) - Gold prices found some support Friday, ending slightly higher, after sliding to new 12-1/2 year lows during the week. ''All the gold market players -- dealers, producers, hedge funds -- are unrelentingly negative,'' Chase Manhattan global commodities Managing Director Dinsa Mehta said. ''But gold is clearly oversold and most of the damage may be done for now, suggesting a correction may ensue before the downside is tested again.'' COMEX February gold ended up $2.00 at $290.50, after falling $6.00 an ounce Thursday to new contract lows at $288.20. News Friday of an unexpectedly large rise of 404,000 jobs in November worried the U.S. Treasury bond market, raising fears of inflation again, and helped support gold prices, traders said. Earlier, reports from Switzerland also helped the tone, traders said. Swiss Finance Minister Kaspar Villiger said the Swiss plan to sell some gold reserves, announced in March this year, would see sales spread over seven years and would be coordinated with other central banks. Swiss officials have indicated this year that, if referendum approval is granted, Switzerland could sell up to 7 billion Swiss francs worth of gold to help fund the Solidarity Foundation's Holocaust victims. In the bullion market, spot gold ended quoted $288.00/50 an ounce, compared to the New York Thursday at $286.00/50, but in the interim gold fixed in London Friday morning at $287.05, the lowest fix since March 6, 1985. Central bank gold sales and gold lending have increased supply to the market this year, as evidenced by news this week that Argentina's central bank sold 124 metric tons of gold earlier this year. The rise in the U.S. dollar to new five year highs against yen this week also prompted some currency related hedging by gold miners. The corresponding slide in the Australian dollar to new four-year lows prompted Australian gold miners to hedge a further 1.5 million ounces of production recently, traders said. ''But some producers have also been buying back hedges, reducing the need for financing and allowing implied gold lease rates to ease,'' Chase's Mehta said. Implied gold lease rates were little changed around 1.65 pct for one month and 1.70 pct for 12 months Friday, after falling in the past week. Copyright 1997 Reuters Limited. All rights reserved.

To: goldsnow who wrote (3790)	12/5/1997 10:34:00 PM
From: goldsnow	Respond to of 116752

S&P Takes Various Rtg Actions on Gold Mining Companies 08:17 p.m Dec 05, 1997 Eastern NEW YORK--(BUSINESS WIRE)--Dec. 5, 1997--Reflecting the recent deterioration in gold prices, coupled with the possibility of a sustained period of continued weak prices, Standard & Poor's has taken the following rating actions: -- Echo Bay Mines Ltd.: Corporate credit rating lowered to double-'B'-minus from double-'B'; senior subordinated debt rating lowered to single-'B'-plus from double-'B'-minus. Ratings placed on CreditWatch with negative implications. -- Royal Oak Mines, Inc.: Corporate credit rating lowered to single-'B' from single-'B'-plus; senior subordinated debt rating lowered to triple-'C'-plus from single-B-minus. Ratings placed on CreditWatch with negative implications. -- Newmont Mining Co.: Triple-'B'-plus corporate credit rating placed on CreditWatch with negative implications. Newmont Gold Co.: Triple-'B'-plus corporate credit, equipment trust certificates, and senior unsecured debt ratings placed on CreditWatch with negative implications. Santa Fe Pacific Gold Corp.: Triple-'B'-plus senior unsecured debt rating placed on CreditWatch with negative implications. -- Homestake Mining Co.: Triple-'B' corporate credit and triple-'B'-minus subordinated debt ratings placed on CreditWatch with negative implications. -- Battle Mountain Gold Co.: Double-'B' corporate credit and bank loan ratings, and single-'B'-plus preferred stock rating placed on CreditWatch with negative implications. -- Agnico Eagle Mines Ltd.: Single-'B'-plus corporate credit rating and single-'B'-plus senior unsecured debt rating placed on CreditWatch with negative implications. -- Placer Dome, Inc.: Triple-'B' corporate credit and senior unsecured debt ratings, triple-'B'-minus preferred stock rating, and 'A-2' commercial paper rating affirmed. Outlook revised to negative from stable. -- Amax Gold, Inc.: Double-'B' corporate credit rating and single-'B' preferred stock rating affirmed. Outlook revised to negative from stable. Gold prices have deteriorated precipitously through 1997, falling to a 12 1/2-year low of below $300/oz last week. The price weakness has been driven primarily by central bank actions and a low inflationary environment, as well as the recent turmoil in Asian markets. Although considerable uncertainty exists regarding the direction of gold prices, the recent weakness could be prolonged and hence, continue to adversely impact the credit quality of the above companies. Standard & Poor's expects to conclude its review of the company's placed on CreditWatch within the next two to three months. Standard & Poor's ratings and outlooks on the following companies were not affected, for various reasons as stated below: -- Barrick Gold Corp. (single-'A' corporate credit rating, stable outlook), given its low cost structure, significant hedge position, and substantial financial flexibility, including a large cash position. -- Normandy Mining Ltd. (triple-'B'-minus corporate credit rating, stable outlook), given its significant hedge position. -- Hecla Mining Co. (single-'B'-plus corporate credit rating, stable outlook), as its product diversification affords some protection against gold price volatility, and its financial flexibility is expected to remain consistent with its current rating. -- Coeur D'Alene Mines Co. (single-'B' corporate credit rating, negative outlook), given its product diversity. Although lower gold prices could well further hinder assumed improvement in its financial performance, its negative outlook already underscores the challenges it faces. -- CreditWire (See also: businesswire.com) Copyright 1997, Business Wire

To: goldsnow who wrote (3790)	12/5/1997 10:38:00 PM
From: goldsnow	Respond to of 116752

Now a political upheaval in South Africa soon? Gold's woes raise grim spectre for SAfrican mines 10:28 a.m. Dec 05, 1997 Eastern JOHANNESBURG, South Africa (Reuters) - Gold's fall to below $300 an ounce threatens up to 150,000 jobs in South Africa's mines, where more than half of current output is being produced at a loss, unions and analysts said Friday. Gold has plumbed new 12-year lows, brushing $285 an ounce levels last seen in 1985 and was last bid at $286.90. South Africa's powerful National Union of Mineworkers said that a worst-case scenario could see up to half of the nation's 300,000 miners dismissed -- a disaster for an economy in which almost a third of the workforce has no formal employment. ''From our side, quite a number of people are going to lose their jobs. We are looking at a figure of 150,000 people. That would be the worst-case scenario,'' union spokesman George Malebatsi told Reuters. ''The industry is badly affected and there is a sizeable number of mines that cannot survive that price,'' he said. But, he said, the bleak picture was slightly brightened by labor law, which prevents a company from sacking more than 20 percent of its workforce in any one year -- a possible reprieve for some workers if the gold price recovered. The South Africa Chamber of Mines said that in the third quarter of 1997, at least 12 of the country's gold mines were classified as marginal -- with 10 of them reporting losses. Chamber of Mines Chief Economist Roger Baxter said many South African mines were protected against the price fluctuations by succesfull and profitable hedging programs. He said physical demand for gold was still healthy and that gold's woes was not caused by central bank selling but by speculative short-selling. Gold supply is being accelerated by bullion dealers and bullion banks borrowing gold from central banks to fund speculative short positions, he said. ''Everyone seems to be harping on about central bank gold sales. The issue is that speculative short positions and speculative short-selling is increasing supply into the market and is driving prices down,'' Baxter said. But he said there would be hardships ahead for South Africa's marginal mines. ''There is definitely going to be short-term pain for a number of mines which are classified as marginal or loss-making,'' Baxter said. Copyright 1997 Reuters Limited. All rights reserved.