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

To: tom shelby who wrote (17247)	9/2/1998 7:19:00 PM
From: Alex	Respond to of 116922

Gold continues to rise Short covering, yen push bullion price higher, but bounce is eyed cautiously September 2, 1998: 7:44 a.m. ET Copper cashes in yen gain - Sept. 1, 1998 Gold gets technical boost - Sept. 1, 1998 CNNfn commodities page CNNfn U.S. stocks markets page CNNfn world markets page CNNfn currencies page LONDON (Reuters) - Gold continued its rally on Wednesday, pushed higher by further short-covering and a stronger Japanese yen, dealers said. Gold was last quoted higher at $280.50 an ounce, up from the previous New York close of $278.60. Bullion was priced at $280.00 in London in the morning, up a dollar from the previous afternoon's price fix of $279.00. Dealers said gold traded quietly in Europe with bullion nudging higher on ongoing short-covering and a buying out of Asia on the back of a stronger Japanese yen, which held below the 138 yen/dollar level. "There has obviously been some short-covering over the last few days to get us back up here, but now that we are back up here it is a bit of a stalemate with a little bit of currency watching," one dealer said. Another dealer said some reluctant buying had been seen since Tuesday as gold moved higher, aiming towards the $281.00 to $283.00 level. "It is a nice little bounce, but I don't think anybody is taking it as a retraction of a bull move. It is some short-covering but mostly people who were long hanging in there," the dealer said. He said if gold failed to break through the $281.00 to $282.00 level, people would cut their losses and the metal would slide again, testing the $274.00 level and then the $271.00 level. Gold market stays liquid T. Hoare & Co. metals analyst Rhona O'Connell said in a report that the gold market remained highly liquid. "Traders are looking towards the September growth in Indian demand to provide some support but remain wary of developments in Russia and what this will do to market liquidity. "The market remains highly liquid, with borrowing rates still very low, reflecting continued lending and swaps from the official sector, including Russia," O'Connell said. Lease rates for one-month metal was at 0.44 percent on Wednesday from 0.80 percent a month ago. In Tokyo, yen-based gold futures closed mostly easier on Wednesday, as the yen's firmness against the dollar stimulated active sales by trading firms. Other precious metal futures ended higher on follow-through buying after New York's gains overnight. "Activity was led by trading firms who sold TOCOM gold in arbitrage trade," one brokerage analyst said. "Investors aggressively hunted for bargains on the back of a perception that gold futures were oversold." Thailand won't adjust gold weighting In fundamental news, the Bank of Thailand said it had no plan to adjust the gold weighting in its overseas reserves despite current gold prices. Central bank governor Chatu Mongol Sonakul told reporters that Thailand had a small proportion of gold worth around $800 million to $1.0 billion in its reserves, which stood at $25.8 billion as of Aug. 21. The central bank also has no plan to unwind the gold in the reserves or invest it in any form. How other metals are faring Silver moved higher on Wednesday in line with the higher bullion price. It was last quoted at $4.84 an ounce against the previous New York close at $4.77. Platinum was also firmer, last quoted at $366.00 from the New York close at $363.00. Palladium was last quoted at $277.00, higher from the previous close at $274.00. home \| markets \| contents \| search \| stock quotes \| help Copyright c 1998 Cable News Network, Inc. ALL RIGHTS RESERVED. cnnfn.com