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

To: PaulM who wrote (16756)	8/27/1998 9:22:00 PM
From: goldsnow	Respond to of 116767

Professionals return bruised gold to 18-1/2-yr low 11:40 a.m. Aug 27, 1998 Eastern LONDON, Aug 27 (Reuters) - Gold matched the 18-1/2-year lows of last January on Thursday in Europe as professional sales out of New York added to earlier losses caused by Australian producer sales, dealers said. London gold fixed at $278.50 a troy ounce in the afternoon, down on the morning's $280.90 and matching January 12's 18-1/2-year low, a fixing level last seen on June 29, 1979. Gold had steadied mid way through European trade ahead of New York's opening, holding above $280.00 until U.S. dealers opened for business, when it dropped a further $2.00 to be last at $278.40/$278.90. ''It was long liquidation by professionals which took out stops below $280. It gapped down $2.50 on virtually no volume,'' said one London dealer. The metal chopped around $278.00 as the end of European trade approached, moving in a new range capped by resistance at $280.00 and support underneath at $276.50/$277.00, dealers said. ''If we take out $276.50, you have got to be prepared for a move to $271.00,'' said one dealer. Russia's financial crisis and its knock-on effects on world stock markets, commodities and the currencies of commodity-dependent economies might have stalled gold's fall a little, one dealer said. ''Gold's down but considering what's happened to everything else - the rouble, the Canadian dollar, the Aussie dollar and the stock markets - it's not been too bad,'' he said, adding that the bulk of gold's fall was due to producer sales. That being said, the dealer did not foresee any sustained buying of gold as a store of value. ''Who is going to buy gold as a safe haven? The people whose currencies are weak do not have any money and the ones whose currencies are strong do not need to go out and buy gold,'' he said, adding that investment funds were still short on gold. Spot gold was last at $277.70/$278.20 versus New York's previous close of $282.00/$282.50. Silver managed to stay out of harm's way through much of European trade only to succumb as it drew to a close, when it dropped to $4.89/$4.92, six cents below New York's previous close. Platinum and palladium were dented along with gold with fears of increased sales by the beleaguered Russians and general gloominess towards commodities seen as the cause. ''I think they are much the same as the other commodities - everything seems to be down and platinum and palladium have come with them,'' one dealer said. ''These low levels are attracting a good deal of physical buying but the paper selling by funds is having a greater effect,'' he said. Platinum was lower at $352.00/$354.00, $8.00 down on New York's previous close, while palladium was at $270.00/$280.00. down $7.40. ((Patrick Chalmers, London Newsroom +44 171 542 8057. london.commodities.desk+reuters.com)) Copyright 1998 Reuters Limited.

To: PaulM who wrote (16756)	8/27/1998 9:37:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116767

The Dow Jones Industrial Average plunged 357.36, or 4.2 percent, to 8165.99, erasing almost seven months of gains yesterday. ''After the Dow dropped so much, we can't buy dollars,'' said Tetsu Aikawa, a foreign exchange manager at Sanwa Bank Ltd. ''I think the dollar will fall further.'' bloomberg.com

To: PaulM who wrote (16756)	8/27/1998 9:40:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116767

Paul M - surely it's just the opposite -it's cheap in all those countries you mention so the mines there have a new lease on life and are producing full bore. B said 'when bonds go up' you say when bond yields go up. He has a point in that when bonds go up their yields go down. I'd buy that vs gold except if you look at the chart of the 30 year bond we see yields going down and gold going down. Now if bonds go down, as you postulate, yields will go up - doesn't that make bonds more attractive in fact? Would that not suck money out of the market? One and one no longer seem to make two? E

To: PaulM who wrote (16756)	8/27/1998 10:28:00 PM
From: Terry Rose	Read Replies (1) \| Respond to of 116767

Paul, The recent reversal in dollar vs. mark, yen, and Swiss franc means someone is selling the U.S. dollar to generate cash. A while back we discussed the point of critical mass in which Japanese banks and insurance companies would have to liquidate dollar assets when certain Nikeii averages were hit. I think that we are now at these levels and those banks are liquidating (selling dollars). Once their U.S. stock portfolio is gone guess what's next. The vaunted treasuries. We should already be seeing the yield of the treasury rising, however I suspect that the Federal Reserve is buying treasuries from Japan, China, and /or Germany to disguise these sales. I caught a short look at the bond pits in Chicago and I think that they are just as confused as those on this thread on what is happening. We are definitely in unchartered waters. Gold continues to be the logical safe haven. But as Tina Turner might have sung "What's logic got to do with it?" Terry,