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

To: Richnorth who wrote (8510)	3/18/1998 10:27:00 PM
From: Greg Ford	Read Replies (2) \| Respond to of 116814

The sale of gold by Belgium was not unexpected. In January Goldfields Mineral Survey estimated that there were 500 tonnes of unaccounted for gold sold in 1987. The sale by Belgium was therefore already priced in to the market. Yesterday when the rumors began about the Belgium sale there was speculative selling which pushed the price from 293.50 to 292. On confirmation of the sale this morning, hedge funds sold short and pushed the price through stops to the 286 level. Gold did rebound however. I believe the market, particularly the OTC market is still very short. Can gold move higher? It will encounter a fair bit of selling and as a result I think the price range will stay capped at $295. There will be selling of spot gold at month and quarter end as producers who have been waiting for better prices liquidate positions. There is likely to be option related selling as well. Greg