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Gold/Mining/Energy : Caussa Capital (formerly Antares) T.CAU -- Ignore unavailable to you. Want to Upgrade?

To: Gene Veinotte who wrote (1718)	12/3/1997 11:04:00 PM
From: bill718	Read Replies (1) \| Respond to of 4718

POG took a hit today alright Gene, but this has to turn around eventually... This may help explain the poor market reaction we have seen yesterday and today to the news... Gold prices slipped to a fresh 12-1/2 year low on Wednesday after further selling in New York and Asia and reports of a major central bank gold sale. The fall in the Australian dollar to a new four-year low against the U.S. unit encouraged hedge selling from Australian gold miners which with other currency- related sales pushed gold down to a recent low of $290.0/$290.50 before physical buying came in. Gold fixed at $291.10 per ounce down $4.00 from Tuesday afternoon and against a London close of $294.20/$294.70. A statement from the Argentine central bank that it had sold four million ounces of gold during the first six months of this year was a further price depressant. One dealer said, ''The price fell $2.00 on the report from Argentina and bounced back a dollar which must be telling us something.'' He added that the usual knee jerk response to news of central bank sales was to take the market lower. This time there were so many negative comments from the central banks that the latest report only confused the picture further. The next charted price was $287.24 which was technically achievable, the dealer said. ''It is going to take something extraordinary to turn this market round,'' he said, adding that this meant the investment funds to book their profits by covering short positions. "The funds have a comfort zone," the dealer said. Although silver was slightly easier -- $5.29/$5.31, down four cents -- not much metal was sold and dealers saw it in a much better light than gold. ''It gets caught up in its historical correlation with gold,'' a dealer said, adding that the market was trying to break away. A short-term target was passing the $5.40 resistance. Longer term $8.00-$9.00 was well publicised as the target of an investment syndicate and increasingly of dealers. ******************************************************************** Let's hope things turn around soon. Wayne