Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: long-gone who wrote (17457)	9/4/1998 6:17:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 116762

ews Alert from Dow Jones Online News via Quote.com Topic: (NYSE:ABX) Barrick Gold Corp, (NYSE:FCX) Freeport-Mcmoran Cpr & Gold B, (AMEX:GGO) Getchell Gold Corp, (NYSE:HM) Homestake Mng Co, (NYSE:NEM) Newmont Mng Corp, (TSE:ABX) American Barrick Resources Corp, (TSE:GGO) , Quote.com News Item #7555143 Headline: Gold Stocks Jump As Weaker Dollar Boosts Price Of Yellow Metal ====================================================================== By Tom Locke, Staff Reporter DENVER -(Dow Jones)- Gold mining stocks rose Thursday in reaction to an upsurge in gold prices that accompanied a weakening dollar, analysts said. Since gold is traded in dollars, a weaker dollar gives other currencies more buying power for gold and boosts its price. The dollar dropped Thursday to a 10-month low against the German mark, falling to 1.7177 marks, before ending the New York day at 1.7285 marks, down nearly two pfennigs from levels late Wednesday in New York. Against the Japanese yen it was quoted at 134.24 yen, down 3 1/2 yen from late Wednesday. Gold prices were up $5.30, or 1.9%, to $285.45 an ounce in late trading Thursday. For every 1% rise in gold prices, gold stocks tend to rise 3% to 5% because of the magnified impact of gold prices on mining companies' earnings and operations, said Michael Dudas, an analyst with Bear Stearns & Co. The Philadelphia XAU index of silver and gold mining stocks was up 12.7% Thursday, and some gold mining stocks performed even better for the day. For instance, Newmont Mining Corp. (NEM) closed at $17.25, up 19%; Barrick Gold Corp. (ABX) closed at $15.25, up 10.9%; Homestake Mining Co. (HM) closed at $11.063, up 14.2%; Freeport-McMoran Copper & Gold Inc. (FCX) closed at $12.75, up 13.3%; and Getchell Gold Corp. (GGO) closed at $11.25, up 20%. Dudas said the rise of the yen and mark versus the dollar caused investors to cover their short positions on gold stocks and take their profits before Labor Day weekend. He said gold stocks have recently been off by about 50% from their prices in April, and gold prices reached 19-year lows earlier this week. Thomas McNamara, an analyst with CIBC Oppenheimer, also pointed to the weaker dollar and higher gold prices as factors in the price surge of gold stocks. But he also emphasized that investors are turning to gold as their uncertainties about the stock market increase. "I think as that anxiety increases, people will seek gold. In other words, people buy gold when they're afraid." The recent rise in gold stocks is "a little bit short money, but I think it's more new money," he said. Dudas disagreed. Cautious investors are putting their money into long-term U.S. Treasury bonds rather than gold, he said. Todd Hinrichs, an analyst with ABN Amro Inc., also discounted the notion that investors are turning to gold as a safe haven. Unless the U.S. dollar experiences a substantial decline, he said, "I don't think you're going to see it." Hinrichs blamed the fall of the dollar in part on publicity early Thursday that a hedge fund was selling it against the Deutsche mark. "Gold was up today because the dollar was down," he said. -By Tom Locke; 303-293-9294 Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.