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To: GOLDFINGER who wrote (16161)	8/19/1998 12:20:00 PM
From: paul ross	Read Replies (2) \| Respond to of 116856

World Gold Council says Q2 gold demand up 50 pct SYDNEY, Aug 19 (Reuters) - World gold demand recovered strongly in the second quarter of 1998 to rise by more than 50 percent from the depressed first quarter to a total of 634.3 tonnes, the World Gold Council (WGC) said in its second quarter report on gold demand trends. After the Asian economic crisis pushed demand down in the first quarter, second quarter demand was only nine percent lower than the record second quarter of 1997, WGC said. Gold consumption totalled 1,040.9 tonnes in the first half of 1998, down by 28 percent on the first half of 1997 in the 25 key world markets monitored by the WGC. WGC manager of gold market analysis George Milling Stanley was optimistic that gold would continue to recover. ''After a roller-coaster first half, overall gold demand looks set for further growth as the year progresses,'' he said. Milling-Stanley also told Australian journalists in a telephone news conference that Russia's currency crisis was not expected to destabilise the gold market through sales by that country's central bank. The most significant development in the second quarter was the end of the huge gold collection campaign from the public in South Korea, coupled with a sharp reduction in selling back to the market by private individuals in Asia, he said. These two factors ''blew a hole'' in gold demand in the first quarter of the year, when consumption slumped by 55 percent to 342.1 tonnes, he said. However, the severe economic and currency crisis in Asia continued in the second quarter to keep gold demand below normal levels in several countries ''in spite of continued good performances in most of the rest of the world,'' he said. India, the world's biggest gold market, continued to benefit from government liberalisation of the gold market with second quarter demand rising by 15 percent to 206.1 tonnes. Demand in the United States, the world's second-largest market, also remained very strong, Milling-Stanley said. U.S. second quarter demand rose by 19 percent to 83.7 tonnes on the previous corresponding period, mainly on investment demand. Recent market liberalisations in China, third in the world ranking, should soon start to have a positive impact, he said. Demand fell by 23 percent in the latest quarter to 76.6 tonnes in China, Hong Kong and Taiwan ''as the Asian contagion spread.'' Demand continued to fall in Japan, by 21 percent to 21 tonnes. But net demand in South Korea recovered to 14.5 tonnes after net dishoarding of 228.0 tonnes in the first quarter. In Indonesia, net dishoarding fell to 1.0 tonne from 64.0 tonnes in the first quarter. Demand remained depressed in Thailand, Singapore and Malaysia, WGC said. In Europe, demand rose by 10 percent to 56.1 tonnes, with strong growth in France and Britain. ''Demand for both jewellery and especially investment is growing around the world and the outlook is for the recovery to continue for the remainder of the year,'' he said. WGC, which monitors gold in countries covering 80 percent of world demand, said demand in key developing countries recovered sharply as net dishoarding ended in South Korea and was virtually eliminated in Indonesia. The 473.5 tonnes consumption in those countries in the latest quarter was double the depressed first quarter, although it was 14 percent lower than the second quarter of 1997. The Asian economic crisis continued to have a markedly adverse effect on demand in East Asia, WGC said. Southeast Asian and South Korean demand of 32.8 tonnes was a 301 tonne turnaround from the 268.1 tonnes net outflow of the first quarter but only a third of 1997 second quarter demand. Related News Categories: international Help Copyright c 1998 Reuters Limited. All rights reserved.

To: GOLDFINGER who wrote (16161)	8/19/1998 4:43:00 PM
From: Bobby Yellin	Read Replies (2) \| Respond to of 116856

read rumours that japanese are threatening to intervene so that might put a bit of caution in currency traders...also rumours that Hong Kong government are intervening in their stock market..also rumours that both Hong Kong and Japan are selling dollars to support their currency just rumours.. now we are supposedly in strong period for gold..so it should go up at least for a while.. listening to too many rumours

To: GOLDFINGER who wrote (16161)	8/19/1998 7:26:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116856

Dollar Falls to 2-Week Low vs Yen as Japan Says It's Poised to Buy Yen Dollar Falls vs Yen on Japan Threats to Sell Dollars (Update1) (Adds yen weakness detail in 11th paragraph. Updates rates.) New York, Aug. 19 (Bloomberg) -- The dollar fell a third day against the yen to a two-week low after top Japanese finance officials warned again that the government is poised to sell the U.S. currency to support the yen, down 9.5 percent this year. ''The time for Japan to intervene to push up the yen is near,'' said Eisuke Sakakibara, vice finance minister for international affairs. Also, Haruhiko Kuroda, director general of the ministry's International Bureau, said ''the weak-yen trend appears to have turned around.'' ''There's a lot of talk from Japan about intervention, and they could well back that up with some action,'' said Shahid Ikram, who helps oversee $25 billion at Commercial Union Asset Management in London. ''If they did, the dollar might go to 138 or 139'' yen, though any rally will prove short-lived, he said. In late New York trading, the dollar fell to 144.01 yen from 144.92 yesterday. Earlier, it dropped to 143.65 yen, its lowest level since Aug. 6. In a week, the dollar has slumped more than 2.5 percent from an eight-year high of 147.66 amid almost daily Japanese threats that dollar sales were imminent. ''It's certainly a good way of talking the dollar down without spending any money,'' said Lee Kassler, chief currency trader at Israel Discount Bank. The U.S. currency was little changed at 1.7977 marks from 1.8003 after a Bundesbank council member hinted German interest rates won't be raised this year. A cash crunch in Russia is also supporting the dollar, helping it gain 1.3 percent this month. Falling stocks and bonds in Russia have led many traders to shun Germany, Russia's largest lender and trading partner. Mark-Yen Speculation that Japan may soon bolster the yen, combined with Russia's woes, is prompting some traders to buy yen and sell marks, Kassler said. The mark is down more than 3 percent against the yen since Aug. 11. Sakakibara, who will attend a private seminar this week in Colorado, said he plans to contact U.S. Deputy Treasury Secretary Lawrence Summers. He didn't say what he would discuss. Japan and the U.S. spent an estimated $6 billion to buy yen June 17, the day after the dollar reached a then eight-year high of 146.78 yen. Although the joint action sliced as much as 13 yen off the dollar's value in following days, the U.S. currency eventually recouped the losses. The weakened yen lowers the price of Japan's exports, putting pressure on Asian trade rivals, many of whose currencies also have lost ground in the last year. It also means U.S. companies operating in Japan earn less when repatriating overseas profit. A jump in Japanese stocks helped drive the yen higher, said David Herro, who oversees $1.5 billion in international stocks at Oakmark Investments in Chicago. The Nikkei 225 stock index rose 2.27 percent to 15,406.34. ''We're starting to find more value'' in Japan, said Herro, who's boosted his holdings of Japanese stocks six months ago to about 15 percent from zero. He said Canon Inc. and Citizen Watch Co. were two of his holdings. Mark Losses The mark was little changed against the dollar after Bundesbank council member Klaus-Dieter Kuehbacher said he sees the key short-term interest rate for the 11 countries introducing Europe's single currency in January at 3.30 percent, Dow Jones Newswires reported. That's where Germany's benchmark securities repurchase rate is now set. Kuehbacher ''mentioned that a rate hike this year is not on the cards,'' said Reto Feller, head of European spot trading at Commerzbank. ''That's bringing pressure on the mark.'' If German rates stay on hold, that means the money-market return on mark-denominated deposits also won't rise. Three-month dollar deposits currently pay 5.69 percent, while mark deposits pay 3.50 percent. The mark is also being hurt by Russia's financial troubles. The country's RTS stock index fell more than 9 percent after the government delayed an announcement about rescheduling $40 billion in ruble-denominated debt. German banks have lent Russia about $30 billion, mostly in non-ruble loans. ''The Russian situation makes people more comfortable holding dollars against European currencies,'' said Ivar Bjornstad, treasurer in charge of foreign exchange at Den norske Bank. The dollar gave up early gains versus the mark as traders speculating the mark would fall further bought it back when the currency failed to drop as much as expected. In recent days, traders has borrowed marks, then sold them ''short'' on expectations Russia's woes would drag the mark far down. That would let them buy the marks back cheaper at a later date, then pocket the difference. Elsewhere, sterling rose to $1.6222 from $1.6168 yesterday. The dollar fell to 6.0265 French francs from 6.0395 francs and to 1.5060 Swiss francs from 1.5101 francs. It was little changed at 1774.15 Italian lire from 1776.90 lire. The U.S. currency rose to 1.5340 Canadian dollars from 1.5287. bloomberg.com