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

To: Ahda who wrote (17049)	8/31/1998 6:15:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116815

Darleen I am partially at a loss myself...Do not understand Gold below $300 at this junction...On the other hand it is not $240 :-) Now lets watch for the bond trap to unfold..as the dollar continue to slide(and that is even without rate-cut IMO) forcing foreigners to pull money and transforming safe-haven into quick- sand....I am prepared to buy commodities on a monthly basis now.... Dollar lower on Russia fears, stock slide 04:34 p.m Aug 31, 1998 Eastern NEW YORK, Aug 31 (Reuters) - The dollar ended mixed on Monday after a roller-coaster session that saw it briefly fall to its lowest level of the year against some European currencies before stabilising. The dollar sank nearly 3 percent against the German mark and more than 2 percent against the Swiss franc on fears that the ongoing financial and political crisis in Russia could damage economies around the world and slow U.S. output. Bargain-hunters pulled the greenback off those lows, but the dollar remained under pressure from the steady erosion in U.S. stock markets. The Dow Jones industrial average fell more than 6 percent trade and the Nasdaq composite skidded more than 8.5 percent. ''When the stocks come off, the dollar comes off,'' said Barry Calder, chief spot currency dealer at Banque Nationale De Paris. The dollar's slide against European currencies pulled it lower against the Japanese yen, dealers said. In addition, investors continued to sell dollars for yen to book profits and raise cash to offset heavy losses on emerging markets trades. The market focused on Russia, where the State Duma rejected President Boris Yeltsin's choice of Viktor Chernomyrdin for prime minister. Moscow kept trading in its currency, the rouble, suspended for a fourth straight session and announced trade would resume no earlier than Wednesday. Traders struggled to make sense of currency market moves, arguing that Russian weakness should hurt the mark as much as, if not more than, the dollar. The mark fell against the Swiss franc, the British pound and the Japanese yen, but rallied against weaker European currencies like the Italian lira and the Greek drachma. ''It's a really confusing picture right now,'' said one dealer at a European bank in New York. The U.S. unit rose against the Canadian dollar, which continues to suffer on weak commodity prices, since commodities exports account for much of Canada's economic strength. The Bank of Canada intervened to support its currency, helping it avoid setting a new record low. The dollar ended lower at 1.7525 German marks from 1.7613 at Friday's close, but rose from an overnight low at 1.73. The greenback was lower at 1.4360 Swiss francs from 1.4405 on Friday and a session high at 1.4614. The dollar was up from its overnight low at 1.4270. Against the Japanese yen, the dollar was lower at 140.55 yen from 141.77 yen at Friday's close. The British pound fell to $1.6800 from $1.6815 on Friday. The dollar rose to Canadian $1.5681 from C$1.5610 on Friday. Copyright 1998 Reuters Limited.