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

To: butkus who wrote (18228)	9/9/1998 12:00:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116953

B - please explain basis for second sentence - may be correct - but is it just a wild a guess? Doesn't flow from first sentence somehow. It's declining profits and and multiples which will sink the Dow. E

To: butkus who wrote (18228)	9/9/1998 2:45:00 PM
From: Sergio R. Mejia	Respond to of 116953

Gold price lower on dollar recovery Tuesday September 8, 6:46 am Eastern Time Gold price lower on dollar recovery LONDON, Sept 8 (Reuters) - Gold edged lower on the back of a slightly stronger dollar on Tuesday, but may be pushed higher by positive technical indicators, dealers said. Gold was last quoted at $287.30/$287.80 an ounce, down from Monday's London close at $288.20/$288.70. Bullion remained quiet in the absence of U.S. market participants following the Labor Day long weekend, but many said this would change when trading began in the U.S. later on Tuesday. Gold was keeping track of the U.S. dollar, which firmed slightly to around 1.73 marks and 132.20 yen. ''I actually feel that the market has again changed direction at what it is looking at. We went through the yen, looking at the Aussie (dollar), looking at the (South African) rand and looking at the Russian situation,'' one dealer said. He said the Australian and South African currencies were far from stable and Russia's financial crisis was showing no sign of abating, but the bullion market was now focused on the dollar. ''The market is now concentrating on the fact that the dollar itself is weak, with talk of lower U.S. interest rates, the Clinton worries and the slowdown in the U.S. economy,'' the dealer said. Dealers said gold might be supported by further short covering from investment funds, which sparked the metal's rally last week from 19-year lows. ''The funds are short, on COMEX, you are talking about seven million ounces. If there is some serious fund short covering, we could see potential for price spikes,'' one dealer said. On the charts, gold last Friday broke a downtrend that extended back to April. ''If prices can hold $285.00-$286.00 on the downside, there might well be impetus for a push up towards the 100-day and 200-day moving averages, which are situated around the $292.50 and $294.00 area,'' one dealer said. Silver continued to track gold and was last quoted at $5.02/$5.04, just down from the close at $5.03/$5.06. Dealers said silver did not have a strong fundamental outlook and had encountered stiff resistance around the $5.03 level which, if breached, might see the metal go higher towards the $5.20 level. Platinum and palladium edged lower, extending losses in Tokyo. Japanese dealers said TOCOM platinum futures extended losses, weighed down by negative technical signals and a large overhang of long positions. Traders estimated net long positions of TOCOM June platinum held by investors at 28,390 lots, or about 14.2 tonnes, as of the end of Monday trade. Investors have accumulated long positions amid the rally in TOCOM platinum that started in July and peaked in early August. Traders said expected liquidation of the remaining long positions by investors would continue to weigh on the market. Palladium was mixed due to uncertainty about the political situation in Russia. The head of the central bank's precious metals operations, Sergei Kyshtymov, was quoted as saying on Tuesday that Russia was not planning additional platinum and palladium exports in the near future. Kyshtymov told Interfax news agency that to increase platinum group metals (PGM) exports a special presidential decree was needed which, to his knowledge, ''was not even being prepared presently.'' Kyshtymov told Reuters on Monday the central bank had no plans to increase sales of its precious metals stocks to boost foreign exchange reserves, but was still mulling plans to use platinum group metals as loan collateral. Platinum was last quoted at $362.50/$364.50 from the previous London close at $367.00/$369.00. Palladium was last quoted at $275.00/$280.00 against the London close at $281.00/$286.00.