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

To: Don Green who wrote (17894)	9/6/1998 11:01:00 PM
From: Greg Ford	Respond to of 116767

Gold has seen a nice move to $287 but i don't think we have a bull market until gold breaks past $300. I think a number of things stand in the way of such a market. They include: 1. Weak demand, in fact dishoarding from Asia; 2. Continued weakness in the Australian dollar and SA Rand. As long as these currencies are weak producers from these countries will continue to hedge and bring more gold to market; 3. Producer hedging. You will probably see more producer participation as the gold price approaches $300. Remember the producers were faced with prices around $270 just a week ago. $300 seems like a good level relatively speaking; 4. Central bank participation. The Russian's may not have sold gold but they have swapped it into the market. The Russian's may have to sell the gold if they can not settle the swap; 5. ECB announcements regarding NCB control over gold. If Latin America becomes a deflationary mess then you may see further gold dishoarding from this region. Signed a believer at $300. My bet is we will see $282 before $300. Greg