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

To: john who wrote (2334)	1/23/1998 12:22:00 PM
From: Luc Beaugrand	Read Replies (1) \| Respond to of 4718

Friday January 23, 11:18 am Eastern Time NY gold, silver jump on dollar slide, funds buy NEW YORK, Jan 23 (Reuters) - COMEX gold and silver prices jumped sharply midmorning Friday on heavy fund buying as the dollar slid further against most major currencies, traders said. ''Some of the biggest funds are buying gold today and its apparently related to the slide in the U.S. dollar this week and whacky rumors about what's happening in the White House,'' Refco analyst James Steel said. Talk of the possible resignation of U.S. Treasury Secretary Robert Rubin, in the midst of talk of allegations of obstruction of justice by President Clinton, was unnerving the markets, traders said. COMEX February gold was up $6.20 at $297.50 an ounce at midmorning after setting a session peak of $300.00, the highest level since early December. In the bullion market, spot gold was quoted at $296.10/297.60 against the London afternoon fix of $291.00 and the New York close Thursday at $290.20/70. Implied lease rates for gold eased a little to around 1.55 pct for one month early Friday, but the 12-month rate was little changed around 1.85 pct. Fund shortcovering has provided support for the gold market in the past week, traders said, and the lack of expected central bank gold sales so far in 1998 has also allowed the market to stabilize. But the focus remains on the intentions of European central banks with respect to the likely amount of gold to be held by the planned European Central Bank. A decision on this issue is likely in May when the participants in the plan for the new European currency are likely to be decided, analysts said. ''European central bank gold sales may be less than expected this year, depending on what happens in May, when the participants in EMU (European Monetary Union), and the amount of gold to be held in the new ECB (European Central Bank) reserves, are both decided,'' said Charles von Arentschildt, managing director for bullion trading with Deutsche Bank in New York in an interview with Reuters Thursday. ''The market believes the ECB is going to hold less gold rather than more, so the potential shock is on upside, if the ECB turns out to have more gold, because what is now perceived as potential sales will be out of market,'' he said. COMEX March silver was up 19.2 cents at $5.910 an ounce, after seeing a session high at $5.940, a two week high. COMEX warehouse silver stocks fell a further 1,057,591 ounces to a new 12 year low at 107,468,636 ounces in Thursday night's data. In the bullion market, spot silver fixed at $5.9250 an ounce, down from $5.8800 Thursday, but the forward price curve remained backwardated with silver for delivery in three months fixed at $5.7630 and 12 months at $5.7215