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

To: Dwight Taylor who wrote (5264)	1/5/1998 3:40:00 PM
From: Bucky Katt	Read Replies (2) \| Respond to of 116752

Toronto golds drop 5 pct on supply/deflation fears TORONTO, Jan 5 - Fears of a flood of bullion from South Korea, and comments about deflation by Federal Reserve Board Chairman Alan Greenspan battered the Toronto Stock Exchange's already fragile gold sector on Monday. Toronto's influential gold and precious minerals sector dropped 343.90 points or 5.33 percent to 6113.52 in midday trading. The drop followed a 43.6 percent decline for the sector in 1997. Heavyweights such as Barrick Gold Corp. (NYSE:ABX - news; Toronto:ABX.TO - news) and Placer Dome Inc. (NYSE:PDG - news; Toronto:PDG.TO - news) were hit hard. Barrick slipped C$1.65 or 6.1 percent to C$25.40, while Placer dropped C$1.30 or almost 7.1 percent to C$17.10 in Toronto. On the New York Stock Exchange, Barrick fell $1.12 to $17.75 and Placer was off 75 cents to $12. South Koreans lined up on Monday after the government encouraged them to turn over their gold jewelry and other bullion in a campaign to raise cash for the troubled country. The gold will be refined and then exported to raise money. ''The reports that South Koreans have been requested to tender their personal gold are again getting to the gold sector,'' said John Ing, president of brokerage Maison Placements Canada. Ing said that with South Koreans' gold holdings estimated at more than 2,700 tonnes worth almost $30 billion, there was fear the move could lead to an oversupply in world markets. Weekend comments by Greenspan also weighed heavily on the gold sector, Pacific International Securities analyst Wendell Zerb said. Greenspan raised concerns among investors when he said that rapid asset price declines could have a negative effect on the economy. Zerb said that bullion could drop further to new lows. The price of gold for February delivery on the COMEX Division of the New York Mercantile Exchange was down $6.10 to $283.30 at midday.