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Gold/Mining/Energy : At a bottom now for gold? -- Ignore unavailable to you. Want to Upgrade?

To: brian krause who wrote (1081)	2/5/1998 6:21:00 PM
From: Bo Bob Brain	Read Replies (1) \| Respond to of 1911

If somebody is buying silver, they might also be buying gold. If there is one thing that is certain in the days ahead, we will see a high degree of volatility in the silver market. Today, prices opened nearly 40 cents higher, at the highest level in 9 years, at the $7.40 level for the March contract. Profit taking by some producers and selling sent prices back below $7.00 before midday. Then we saw new buying emerge and prices raced back above the $7.00 level. The other metals took their queue from the movement in the silver market. Gold was not impressive, it did reverse down on the day, opening on the highs, closing negative on the day, not a good indication. Some more consolidation in gold could set up some good buying opportunities. When you get into this situation in silver, no one really knows how high the price can go. But if you take away 130MM ounces from the market, which is what Warren Buffet has done, 20% of the world production for the last year, it definitely has an impact on the market. Silver should continue moving higher, although it should be extremely volatile. Gold down .50 at $300.70, silver up .26 at $7.28, platinum gained $2.80 at $399.30. Gold and platinum are still looking at the fundamental reasons why they should be moving up (inflation). Quite a bit of nervousness in the bond market in front of tomorrows employment report. Many people are expecting that the economy did slow down in the beginning of this year due to problems in S.E. Asia. But now we are seeing some numbers come out where the economy is not showing signs of slowing. If we do not get that slowing, it would definitely be bearish for the bond market. Today many traders just wanted to take profits and lock them in before we get the employment data tomorrow morning at 8:30 EST. That will set the tone for the market. We have support at 120-02/03, a double bottom there, resistance at 123. Whichever way the market breaks is going to go a long way, tomorrow mornings numbers will give us that direction. Bonds down 24/32 at 120 27/32. Also much nervousness in the dollar, it is not looking that well compared to the bond or stock market. Has broken some good support support areas around 100, closing below the 99 level. Stocks slightly lower, nothing dramatic . The dollar is on the defensive, with the dollar index down 68 pts at 98.44. The stock market is sort of on hold right now, waiting and watching what we get for the first piece of economic data for the first quarter of this year, the employment report for Jan. which will be released tomorrow morning. That will give us an idea if there is any impact whatsoever from S.E. Asia. Are companies slowing down their production? How many people are they hiring or firing? That will tell us what to expect from the stock market, interest rates, and the dollar. All of this has kept the market on hold today.