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

To: robnhood who wrote (9074)	3/30/1998 6:06:00 PM
From: Alex	Read Replies (1) \| Respond to of 116759

Monday March 30, 2:45 pm Eastern Time Anglogold sees bullion triumphing over speculators JOHANNESBURG, March 30 (Reuters) - South Africa's Anglogold (ANGJ.J) said on Monday the price of bullion should rise this year as ''apocalyptic'' visions of European central bank selling faded and its role as a store of value returned to the fore. ''It is envisaged that the gold price will be stronger in the year ahead,'' Bobby Godsell, chief executive of the world's largest gold producer, said in his annual bullion review. In a plea to central banks, Godsell urged swift action to debunk what gold producers believe to be a myth -- that thousands of tonnes of gold were hanging over the market. ''Certainty about the place of gold in the new European monetary system must emerge at mid-year at the latest,'' he said. Bullion has recovered to $302 per ounce after plumbing 18-1/2 year lows amid fears of central bank selling, but it is still in perilously weak territory for the world's marginal miners. Gold producers have gone on the offensive and lobbied Europe's central banks -- whose gold reserves are feared most likely to be sold ahead of a single European currency and the creation of a European central bank. Godsell signalled they were making headway. ''Gold producers have acted together to engage central banks as to their intentions. It seems clear that France, Germany and Italy -- the European Union's major gold holders -- plan no sales at all,'' he said. The fall in bullion was, according to Godsell, almost entirely the result of the central banks' perceived 34,000-tonne overhang of gold and flew in the face of rising demand -- placing the market in the grip of a ''malign paradox,'' he said. ''The gap between the annual long-term demand and long-term supply has risen to some 1,300 tonnes.'' Anglo estimated demand -- mainly for jewellery -- rose 14 percent in 1997, verses only two percent growth in supply. Godsell said he was sure that central bankers were aware at the damage being done to the price of bullion -- which has hit the value of their own reserves -- and made it clear that he expected them to take firm action. ''Only the bankers themselves can bring this negative speculation to an end,'' he said. In addition, Anglogold believed that the currency crisis which hit southeast Asia at the end of last year had reaffirmed the role of gold as a store of value. It was upon the twin prospect of bullion's old role returning to the fore and central bank selling receding as a threat that Godsell based his prediction for higher prices. Anglogold earlier posted a firm debut on the Johannesburg Stock Exchange, closing at 214 rand after the company replaced Vaal Reefs Exploration and Mining Co Ltd (VAAL.J) on the gold board. Vaal shares closed at 201 rand on Friday. Anglogold was formed earlier this year through the merger of Anglo American Corp of South Africa's (AACJ.J) bullion assets.