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

To: Ahda who wrote (15692)	8/11/1998 4:19:00 PM
From: Ron Schier	Respond to of 116779

NEW YORK, Aug 11 (Reuters) - Despite the sharp fall in the U.S. stock market, COMEX gold and silver futures and NYMEX platinum and palladium futures ended sharply lower Tuesday in response to further U.S. dollar strength overnight. "Equities may need to fall much further before investors in the developed world start diversifying into gold," said Ted Kempf, an analyst with industry consultants, CPM Group in New York. "In the meantime the U.S. dollar and bonds are the safe haven and the weakness in Asian currencies is dampening demand for gold in the region that is traditionally the biggest consumer of the precious metal." COMEX December gold ended down $3.30 an ounce at $288.00, after seeing an intraday low at $287.30, not far from six-month lows seen last week. Spot gold in the bullion market ended quoted $283.70/20, compared to the London Tuesday afternoon fix at $284.80 and the New York close Monday at $287.10/60. Spot gold prices are now not far from the 18-year lows seen in January. Implied lease rates for gold were little changed around 0.64 pct per annum for one month and 1.49 pct for 12 months. Gold prices tend to be negatively correlated with both the U.S. dollar and the U.S. stock market, falling when the dollar or stock market rises and vice versa, but the dollar is a bigger influence than the stock market, analysts said. With economic growth in the U.S. stronger than in Europe or Asia in recent years, the dollar has risen to eight-year highs against the Japanese yen and other major currencies, and dollar and U.S. stocks and bonds have proved a better safe haven than gold. In addition, the rise in the dollar, and the corresponding fall in Asian currencies, has also pushed up the price of gold in Asian currencies, tempering the demand for gold in many developing countries. Indeed the rise in the price of gold in Japanese yen, South Korean won, Indonesian rupiah or Thai baht has meant that gold has already performed its traditional safe-haven role for the nearly one billion Asians who save their disposable income by buying gold. But now many Asians need to sell gold to pay off their dollar-denominated debt and help them get through the economic crisis in that region, analysts said. Meanwhile, COMEX September silver ended down 13.2 cents at $5.200 an ounce, a two-month low, while spot silver ended quoted $5.18/21 an ounce, compared with the London Tuesday fix at $5.2000 an ounce, and Monday's New York close at $5.32/35 an ounce. NYMEX October platinum closed down $4.40 at $377.10 an ounce, and NYMEX September palladium ended off $2.50 at $292.00. Japan is one of the world largest consumers of platinum and palladium for use in electronic and automotive applications and further evidence of a lack of Japanese economic growth overnight was pressuring PGM prices, traders said