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

To: Casey who wrote (7403)	2/9/1998 11:33:00 AM
From: Alex	Read Replies (1) \| Respond to of 116830

From U.S.A.Gold............... MARKET UPDATE (02/9/98) AM-----Gold hung on tenaciously to the $300 mark laying the groundwork for further moves to the upside, according to traders in Hong Kong, London and New York. Last week we reported rumors that Warren Buffett and George Soros were acquiring both gold and silver. Today a Hong Kong analyst confirmed in a Reuters report that Soros was in the market. Down the road, we think it will surface that Buffett and Soros are acquiring gold as well." "If they (Soros and Buffett) are looking for a better return on their investment -- and they probably are -- there is scope for prices to go higher." Gold also did well in Tokyo overnight with much short covering on fears that the situation in the Mideast could escalate. The Saudi Arabian position that the U.S. could not use Saudi bases to launch strikes against Iraz will no doubt encourage Hussein's aggressive behaviour. There has been some selling in the $302-306 range. We will see if we can get through it this week. The big drawdown of COMEX gold stocks will be seen as a plus as the day unfolds. If we break 400,000 ounces it could cause a run on gold. The Portugese finance minister publicly commented that now would not be a good time to mobilize gold reserves. Fourteen gold mines in South Africa are threatened with closure, according to another Reuters report this morning. The closures would affect 114,000 miners. The current plight of the mines in So. Africa is revving up the left in that country. Some are calling for ending dual state/private ownership of the mines and vesting all rights with the state. Mandella, as you may recall, was an ardent communist is his younger days and such talk smacks of nationalization -- an event which would likely send the price of gold soaring since South Africa is still by far the largest producer of gold on the planet. We will be monitoring the South African situation carefully now in light of this latest revelation. A final determination is expected by September. The dollar is up this morning and stocks down slightly. Have to say that gold looks likes its going on its own impetus these past few sessions -- a very good sign. We will update if anything interesting occurs, but it looks at the moment like this will be it for the day. Have a good one, fellow goldmeisters.