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To: PaulM who wrote (14067)	7/2/1998 5:54:00 PM
From: goldsnow	Respond to of 116764

FOCUS-Strong dollar pressures gold, silver, oil higher 05:35 p.m Jul 02, 1998 Eastern NEW YORK, July 2 (Reuters) - Gold and silver traded in New York ended the day lower Thursday under pressure from strength in the U.S. dollar, but trade was light ahead of the U.S. Independence Day holiday. Elsewhere, tension over the situation in Iraq supported crude oil prices and corn prices fell further in the absence of forecasts for any severe weather in the Midwest. ''In the absence of further news from the European Central Bank on its gold and currency reserves, gold and silver have been reflecting their traditional negative correlation with the U.S. dollar, but the supply/demand balance for platinum group metals suggests PGMs are probably good value again,'' said Refco New York analyst James Steel. Gold for delivery in August ended down $2.40 at $295.00 an ounce, after renewed strength in the U.S. dollar overnight against major currencies and a further slide in the South African rand. Silver for delivery in September ended down 14.3 cents at $5.332. The South African rand slid to a new low at 6.3500 rand to the US dollar, pushing up rand gold prices to their highest levels in more than a decade, providing tempting levels for South African miners to hedge from, analysts said. South Africa is the world's largest gold producer. ''The so-called price of gold,'' contended Henry Bingham of gold fund Van Eck Associates of New York, ''really reflects the value placed on other forms of money and the degree of confidence in the issuers of that money.'' Gold prices have been rising in many of the currencies of East Asia in recent months, reflecting the collapse of many of the region's currencies, while gold prices in U.S. dollars have been falling as the U.S. dollar has risen to a seven-year high against the basket of currencies in its trade-weighted index. About a billion people in Asia still save their disposable income by buying gold, rather than trusting their wealth to weak banking systems and failing currencies, analysts noted. India is the world's largest gold consumer. ''It (gold) can be expected to inherit some of the market share surrendered by a host of failing secondary currencies,'' said James Grant, editor of Grant's Interest Rate Observer. ''Also, in view of the worldwide overextension of the primary currency, it can expect to make some inroads on the dollar,'' he said. In Chicago, prospects for trouble-free growing weather next week in the U.S. Midwest again caused moderate losses in corn futures Thursday, traders and analysts said. Corn for delivery during the new crop year settled 4-1/4 cents per bushel weaker at $2.48-1/4. ''The weather forecasts were just enough to put bulls on the defensive. The forecasts appear to be near ideal, if they're true, for the Midwest,'' said John Kleist, a Chicago-based commodities consultant. Wednesday's National Weather Service six- to 10-day outlook was for normal to above-normal precipitation in the U.S. Midwest and above-normal temperatures from July 7 through July 11. Worries about tensions between the U.S. and Iraq supported crude oil, gasoline and heating oil prices, but trade was thin because New York markets will be closed on Friday for the holiday. Crude oil for August delivery on the New York Mercantile Exchange settled at $14.50 a barrel, up 13 cents. August gasoline settled at 48.65 cents a gallon, up 0.50 cent. August heating oil ended at 39.38 cents a gallon, down 0.10 cent. ''It's all Iraq,'' said one trader, referring to renewed tension in the Gulf after Tuesday's incident where a U.S. F-16 fired a missile at an Iraqi defence battery in southern Iraq. Iraq condemned the act as unjustifiable aggression and on Thursday, its press stepped up criticism of the U.S. over the incident. The U.S. has said the U.S. aircraft fired after an Iraqi radar locked in an accompanying British jet over a Western- imposed ''no-fly zone.'' The U.S. played down the incident as minor. On Thursday it confirmed an Iraqi report that the F-16's missile missed its target. ((--Chicago Commodities Newsroom, +312-408-8720)) Copyright 1998 Reuters Limited.

To: PaulM who wrote (14067)	7/2/1998 6:14:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116764

S.African stocks defy weak rand, finish firmer 11:46 a.m. Jul 02, 1998 Eastern JOHANNESBURG, July 2 (Reuters) - South African gold shares lifted the market higher on Thursday as they and other rand hedge stocks were boosted by the ailing rand, dealers said. The rand sagged to a fresh low of 6.32 against the dollar, as sellers in London and Johannesburg continued to pressure the currency. It was last at 6.2950 (bid) versus the dollar. The benchmark All Share index ended 1.45 percent or 99 points higher at 6,921.1, bolstered by strong demand for gold and rand hedge stocks. Gold shares put a glow to the dull market. The influential index gained 7.46 percent or 68.9 points to close at 992.7. Industrials were also cheered by rand hedge stocks, ending the day 0.62 percent or 49.7 points higher at 8,120.4. Financials took a knock from the battered rand which raised the spectre of another prime rate hike by banks fearing a squeeze on their margins. The banks and insurance stock-laden sector finished down 0.44 percent or 51.6 points to 11,618.7, but off the day's lows. Turnover for the day was at a healthy 1.5 billion rand. Dealers said there was a scramble for stocks which benefited from the depressed rand. Dealers said further buying in gold and rand hedge stocks was seen continuing on Friday. The Reserve Bank reduced the daily key repo rate to 20.382 percent from the 20.527 percent set on Wednesday. Copyright 1998 Reuters Limited.