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

To: long-gone who wrote (9131)	4/1/1998 10:38:00 AM
From: MtnBear	Read Replies (1) \| Respond to of 116756

Thought I would post a copy of an item from Gold Eagle -Europe News which is supportive of the 310 test idea: " Spot gold slid from an overnight high of $301.25 to briefly break the $300-level. But at 1030 GMT, prices were trading back above that round number support at around $300.80-301.20. "All it's done really is track the dollar," said one dealer. The US dollar extended gains against the yen and the Deutsche mark today after a disappointing fiscal 1997-98 year-end (Apr-Mar) in Japan . The rollover of contract month in New York Monday also triggered profit-taking which saw prices end the day near the lows. However, sources tended to view the retracement as a constructive confirmation of underlying support after the rapid gains seen in recent trade. "There is support below the number $300," said one dealer. In general, gold market analysts have become cautiously optimistic that gold can challenge $310 over the next month or so. "We cannot help but feel that the precious metals have moved a little too high too quickly. However, the barrage of negative sentiment seems to be dissipating for gold and we believe that a push to $310 could be seen," said a recent report from analyst GNI Research. "With momentum turning positive and both the large sellers of the past 18 months--the producers and the central banks--currently out of the market, and in fact tending more to the buy side, the outlook is increasingly positive. A move to the $310-320 per ounce range now appears to be on the cards over the next few weeks," concurred analyst Deutsche Morgan Grenfell. Analyst Macquarie also noted talk of a test of $310 amongst traders. But it warned suggestions of a sustained bull run were premature amid ongoing uncertainty over reserve decisions at the European Central Bank until at least May. "We are cautious of the longevity of this rally given the likelihood of producer hedging and the lack of change in the fundamentals," it said. Nevertheless, Macquarie pointed to a change in the gold market's vulnerability to even slightly bearish news seen in 1997. "Things look different now...It seems that the market has now grown accustomed to central bank sales and the surrounding issues," it suggested. Analysts pointed to reports of producer buybacks and restructuring of hedging books, and suggested the only new hedges were project specific where required by financiers. "Although it may still be premature to suggest that the market has turned the corner, the signs are more positive than for many months and bullion may well be in the early stages of building a platform for a sustained run higher," Deutsche Morgan Grenfell said. Macquarie listed the following bullish influences: --Bank of Italy suggestions ECB reserves could exceed 30% --A strong recovery in oil prices, reducing deflationary concerns and improving the Middle Eastern demand outlook --A plan to launchanged a Millennium gold coins --Reports of good Indian demand --Buybacks by producers WMC, Dome resources and Laverton --Belgium's scrapping of a plan to mint up to 133 tonnes worth of gold coins Spot precious metals prices are in US dollars per ounce: London 1030 GMT Tokyo 0645 GMT Late New York Gold (KRCGL) 300.80-301.20 300.10-300.50 301.00-301.50 Silver (KRCSL) 6.29-6.38 6.27-6.37 6.36-6.39 Platinum (KRCPL) 405.00-407.00 407.50-409.50 409.50-411.50 Palladium (KRCPA) 262.00-264.00 261.00-263.00 263.00-265.00 " -- Miranda Maxwell, Bridge News Best Regards; Mtn Bear