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

To: Zardoz who wrote (6927)	1/29/1998 3:59:00 PM
From: Eric Freeman	Read Replies (2) \| Respond to of 116762

No one can say Hutch is ambiguous - I am looking at the same stuff and come to a different conclusion. Trend is up off lows, world has not seen full impact of many scenarios that are unfolding, and although volatile gold will keep moving up, but not without major breaks. Thats how I read it - could very easily be wrong. Thats why we have a market - meanwhile I like trading the high beta gold stocks, until I feel the real momentum starts. Working well so far. Eric

To: Zardoz who wrote (6927)	1/29/1998 6:50:00 PM
From: goldsnow	Respond to of 116762

Gold pares gains, dealers still see as buy 11:37 a.m. Jan 29, 1998 Eastern LONDON, Jan 29 (Reuters) - Gold came off its session highs on Thursday as producer sales capped the effects of renewed investment fund interest, but dealers remained positive about its ability to climb higher. Gold fixed at $302.50 an ounce in the afternoon, down from the morning's $304.25, having tried to get to $306.00 bid in the hours before. ''It looks like there's resistance around $306.00, we've tried it a couple of times,'' said one London dealer, who added that the metal was trying hard to go higher. ''So far these corrections have been viewed as opportunities to buy, which I think is the correct strategy,'' he said, attributing the uneven pattern to producer selling capping pretty solid buying and short covering by investment funds. ''I think the funds are quite happy to let the market come back a bit then come back in and buy again. That just proves to me that this is a long-term short-covering exercise rather than anyone trying to bully the market.'' Funds sold gold short through much of last year, confident of profits from subsequent price falls on real and rumoured central bank reserve sales, increased central bank gold lending, a strong U.S. dollar and low inflation outlooks for many of the major economies. Gold's recovery marks the unwinding of fund positions, a theory that chimes with the views of a second London dealer, who saw U.S. operators as the major force behind the rally. ''Continuing strength from the United States...that's where most of the buying has been. Europe suffered early on from what we heard was some Australian producer selling. Once that was absorbed -- fairly easily as it turned out -- it rose higher again,'' he said. ''Perhaps the market has room in all this to retrace up to somewhere around $313/$315, where the rally started to break down from,'' he said. He added the warning that a correction to $296/$297 would not be out of place given that the market had come up so far from the lows. Precious metals analyst Rhona O'Connell of brokers T.Hoare and Co said the $303/$305 band was likely to provide stiff resistance for gold which, if cleared, would open the way for a further $10 gain. Above those levels, there was likely to be quite a tussle, she said in a daily market commentary. ''Although the technical analysts are suggesting that the clearance of $300 paves the way for a move to $313, dealers are wary and overall sentiment is that any spike (should one materialise) should be sold,'' she said. But O'Connell also highlighted the gearing of the gold stocks to the spot price and the more rapid turnaround in sentiment towards equities as opposed to the metal. Since gold's $277.00 low of January 12, spot metal had risen nine percent, she said, while the Johannesburg JSE Gold index was 24 percent higher and Australian and North American mines were up 27 percent and 28 percent respectively. Her figures for the latter two were based on data from the FTSE gold mines index. For the first time in recent weeks silver looked less healthy than gold, continuing its fickle trade of recent days to fall to $6.08/$6.10, three cents off its Wednesday London close. Platinum and palladium were firmer in European trade, helped first by gold's strength and then ignoring the yellow metal's correction later on. ''Both are going to continue to be fairly volatile but overall, until we see some real metal out of Russia, they are going to continue to be bought,'' said one dealer. Russia, the world's major palladium supplier and an important source of platinum, scared the market last year by failing to deliver the metals during the first half. Fears of a repeat have encouraged buyers of both metals this year. Platinum was last at $390.00/$392.00, up $4.00 on its London close, and palladium was $7.00 up at $236.00/$238.00. ((Patrick Chalmers, London Newsroom +44 171 542 8057. london.commodities.desk+reuters.com))