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

To: PaulM who wrote (4444)	12/18/1997 6:03:00 PM
From: goldsnow	Respond to of 116764

"More important, he said, was the withdrawal from the market last Tuesday of one significant seller of recent weeks." Gold rallies on Tietmeyer remarks, seen limited 11:12 a.m. Dec 18, 1997 Eastern LONDON, Dec 18 (Reuters) - Gold rose more than $2.00 on Thursday after German Bundesbank President Hans Tietmeyer said there was consensus among European central bankers to include gold in the future European Central Bank's reserves. Tietmeyer told a Frankfurt news conference there was a consensus among European central bankers that the future central bank must hold some gold. ''There is agreement among the central bank governors of the European Union that a limited share of gold should be included in the reserves of the European central bank,'' he said. His comments, while coming as no great surprise to bullion dealers, helped push gold to fix at $290.00 an ounce in the afternoon, up on the morning's $287.05 which occurred during relaxed, pre-holiday trade. One dealer did not see Tietmeyer's remarks, which were accompanied by others stating that no plans existed for German central bank gold sales, as breaking much new ground. ''We saw a quick rally on the back of it but there was some quick selling coming in. He didn't really tell us anything we didn't already know. We suspected the ECB would hold some gold, it's a question of whether it is a greater or lesser amount, and we would not have expected the Bundesbank to say it was going to sell gold,'' he said. Another dealer was equally laid-back, saying the market, near $290, was at the top of its current range. More important, he said, was the withdrawal from the market last Tuesday of one significant seller of recent weeks. ''We know there's been something going on for the last couple of weeks on the selling side. That started to alleviate on Tuesday allowing the market to take some relief,'' he said. Gold firmed through Wednesday on buying which was helped by Japan's announcement of a tax-cutting package to boost the economy, which boosted the yen against the dollar and made the yellow metal cheaper in terms of the Japanese unit. Gold was last at $289.40/$289.90 versus Wednesday's previous London close of $287.70/$288.20. Silver remained unmoved by gold's rise, firming only a touch to $5.99/$6.01 versus its Wednesday close of $5.97/$5.99, having tried higher earlier in the day. Platinum and palladium were also more relaxed after the selling pressure of recent days, the former recovering lost ground to reach $355.50/$357.70, up $6.50 on its close, and the latter unchanged at $188.00/$190.00. -- Patrick Chalmers, London Newsroom +44 171 542 8057. london.commodities.desk+reuters.com Copyright 1997 Reuters Limited. All rights reserved.