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

To: goldsnow who wrote (11093)	5/2/1998 5:40:00 PM
From: Alex	Read Replies (1) \| Respond to of 116944

Gold Traders Support Trichet for European Central Bank the French like gold Gold enthusiasts are hoping the dispute over who should be president of the European Central Bank will be settled this weekend in favour of Jean-Claude Trichet, at present governor of the Bank of France, rather than his opponent Wim Duisenberg, president of the European Monetary Institute. Traders said Mr Trichet would be likely to recommend a higher proportion of total European central bank reserves be held in gold and that this would be bullish for the market. "Trichet is the most avowedly pro-gold central bank head on record," pointed out Tony Warwick-Ching, analyst at Flemings Global Mining Group. Estimates of the percentage of total European Central Bank reserves that will be in gold range from 5 to 30 per cent. A decision about this is not expected to emerge from this weekend's European summit but will probably come early next month, dealers suggested. Gold's price fell in late trading in Europe on Thursday after news that inflation in the US had all but disappeared, dropping from $311 a troy ounce to $306. It remained at about that level in Europe yesterday. An announcement by Phelps Dodge, the big US copper producer, that it was to cut output at its Chino mine in New Mexico by about a third came too late to have any impact on the London Metal Exchange. Traders were squaring their books ahead of the long weekend - the LME is closed on Monday - and by the close copper for delivery in three months was up $4 a tonne at $1,851. Phelps Dodge said it would cut 94 jobs at Chino and reduce daily production from 430,000 short tons to 300,000 tons. This would cut copper output by 45,400 metric tonnes over three years. Oil prices rose yesterday amid speculation that Opec countries were considering extra cuts in output. In late trading the international benchmark Brent price was up 32 cents a barrel to $14.78. Six Opec oil ministers have already publicly backed bigger output cuts if the 1.245m barrels a day pledged in March prove insufficient to lift prices. The Financial Times, May 2, 1998