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

To: Stocks who wrote (10330)	4/21/1998 6:58:00 PM
From: Donald F. DeKold	Read Replies (2) \| Respond to of 117044

Maybe this is why the XAU rose today...a depreciating dollar. NEW YORK (Reuters) - The dollar tumbled against the rebounding German mark Tuesday, reflecting optimism that Europe"s single currency will get off to a sound start and speculation that Germany may soon hike interest rates. Extending overnight losses, the dollar fell to a 2-1/2-month low against the mark, partly in sympathy with the pound, which slumped against the German unit for the second day. Both the dollar and pound suffered as investors took profits on safe-haven trades. The European Union is expected to announce around May 2 that 11 nations will join European Economic and Monetary Union (EMU) Jan. 1, dissolving doubts over whether the new currency, the euro, would get off the ground. ''You are seeing the pound slightly lose its luster as the political reality of May 2 comes closer,"" said John Nelson, foreign exchange manager at ABN-AMRO Bank. ''The dollar and pound are both going to be under pressure because all the buying when (traders) were voting no on EMU is probably no longer appropriate."" Investors also bought marks believing a surprise 5.1 percent jump in the growth rate of Germany"s March M3 money supply, a key barometer of inflation, would nudge the Bundesbank"s toward tightening credit. Compounding such speculation was the continued expectation that Germany must soon move interest rates higher to converge with other European rates before monetary union. Bundesbank board member Edgar Meister calmed market nerves, telling Reuters on Tuesday he saw no urgent need for frantic activity now to bring European Union interest rates closer together for the launch of the euro. The dollar ended at 1.7884 marks, down from 1.8010 at Monday"s close, and at 131.25 Japanese yen, off from 132.10 Monday. It fell to 1.4815 Swiss francs from 1.4977 and rose to Canadian $1.4313 from C$1.4275. The pound slipped to $1.6748 from $1.6757.