Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: IngotWeTrust who wrote (9559)	4/8/1998 2:53:00 AM
From: Alex	Respond to of 116764

The link in the previous post is often very slow responding - therefore................. Gold takes body blow from Bundesbank Andi Spicer Mining and Resources Editor Johannesburg The German Bundesbank sent a shiver through gold markets yesterday by announcing that bullion would play only a minor role in the formation of the new European Central Bank (ECB). "Gold hardly plays a role today," said Ernest Welteke, a Bundesbank council member. But he said the bank would likely hold gold in its reserves when it was formed next month. Germany, the second largest holder of gold reserves after the US, certainly had an interest in seeing gold maintained at the central bank, he said. The bullion market reacted with a $3,30 price fall in a matter of minutes, although it recovered slightly in late trade. The announcement was released seconds after the London afternoon fixing, which saw gold at $309,20 an ounce. Welteke's statement was important in that his comments on gold would be seen as Bundesbank policy and hence future ECB thinking. He is also president of the state central bank in Hesse, one of Germany's regions. "There was some consolidation after the initial fall in the gold price, which was a reaction to this statement from the Bundesbank," Michael Wagner, the chief bullion trader for Frankfurt broker Brandeis, said yesterday. "The statement fuels the sentiment that more central bank selling lies ahead in the medium term." The gold market has been nervous ahead of the establishment of the ECB next month and the forthcoming announcement of how much gold it will hold. The bank will hold European Monetary System members' reserves to underpin the new euro currency. The uncertainty ahead of the formation of the ECB during the last year has pushed gold prices to their lowest in 18 years and strained the South African industry, which has seen huge job losses and corporate restructuring.