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

To: Richard Mazzarella who wrote (12420)	5/30/1998 10:58:00 PM
From: goldsnow	Respond to of 116898

NEW YORK, May 29 (Reuters) - COMEX and NYMEX precious metals 12:38 a.m. May 30, 1998 Eastern NEW YORK, May 29 (Reuters) - COMEX and NYMEX precious metals futures ended mostly higher Friday, on moderate volumes, after sliding lower for most of the week. ''We may be seeing a bottom being formed in silver in particular, with a close above $5.00 an ounce an encouraging sign, after that market reached oversold levels this week, and I wouldn't be surprised if we a higher opening on Monday too,'' said Scott Meyers, an analyst with Pioneer Futures in New York. COMEX July silver ended up 3.5 cents at $5.090 an ounce, after sliding to a new six month low at $4.920 early. Total COMEX silver volume was estimated at 18,000 lots. In the bullion market spot silver ended quoted $5.09/12 an ounce, compared to the London Friday fix at $4.9565 and the New York close Thursday around $5.03/05. Spot silver prices saw a six month low this week around $4.92 an ounce, after falling 38 pct from a nine year high at $7.90 an ounce seen in February on news of the purchase of 129.7 million ounces of silver by US billionaire Warren Buffet. But talk of hedge buying by photographic supplies manufacturers this week reminded the market that silver is in its ninth year of supply/demand deficits, analysts said. Silver demand exceeded mine and scrap supply by 198 million ounces in 1997 and a similar sized deficit is expected in 1998, according to the Washington DC-based Silver Institute in a report published last week. The ongoing deficit has resulted in identifiable silver bullion stocks falling to 537 million ounces in 1997, down from about 1300 million ounces in 1990, the report said. Meanwhile, COMEX June gold ended down just 40 cents an ounce at $295.10, but June gold goes into its delivery period next week, and August is now the more active contract. COMEX August gold closed down 50 cents at $295.10, but held above the intra-week low seen Wednesday at $293.50. Total COMEX gold volume was estimated at 30,000 lots. In the bullion market, spot gold ended quoted $292.70/20, compared to the London Friday afternoon fix at $293.60 and the New York close Thursday around $292.95/45. Implied gold lease rates were little changed around 1.00 pct per annum for one month and 1.90 pct for 12 months. Rumors of further announcements of European central bank sales and concern about the ongoing strength of the US dollar were continuing to weigh on gold, traders said, prompting commodity funds to add to short positions again. The dollar saw a new seven year high against the yen Friday. ''But US pension funds are beginning to see the value of gold as a portfolio diversifier, buying about 50 tonnes last year,'' Richard Scott Ram, a World Gold Council economist, said Friday. ''Gold is negatively correlated with both stocks and bonds over long periods of time, enabling returns to be increased without increasing the volatility of a portfolio,'' he said. ''In addition gold is at historically low prices in US dollar terms, while stocks and the US dollar are at historical highs increasing the chance of a return to the mean in those asset classes.'' In the platinum group metals (PGMs) markets, NYMEX June palladium futures, due to go into the delivery period from next Monday, ended up $6.10 an ounce at $294.55, while the now more-active September contract recovered $10.10 to $274.55. Spot palladium prices ended quoted $296.55, after a 32 pct retreat in two weeks from all time highs at $420, following news of the first exports of the white metal from Russia in six months. But Japanese traders said no official approach had been made by Almaz to Japanese trade houses to negotiate a new 1998 supply contract. ''Almaz USA and Almaz Moscow have been offering palladium sponge, bypassing the Japanese, and the material is arriving in my vault, though it is sponge and no ingot is available,'' said one dealer at the US branch of a major PGM refiner and fabricator. NYMEX July platinum ended up $1.00 an ounce at $368.20. ((New York Commodities Desk, 212-859-1640; clive.mckeef+reuters.com)) ^REUTERS@ Copyright 1998 Reuters Limited.