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

To: Alex who wrote (18439)	9/11/1998 1:40:00 AM
From: Sergio R. Mejia	Respond to of 116753

- ...gold would continue to rise and break through the $300-an-ounce level.. - ...only haven that has worked for South Africans, Indonesians, Australians and even Canadians has been gold.. Thursday September 10, 3:14 pm Eastern Time Canadian gold sector soars on U.S. dollar woes TORONTO, Sept 10 (Reuters) - Canada's gold mining sector continued a solid two-week rally on Thursday as political uncertainty in the United States prompted nervous investors to dump U.S. dollars and buy gold bullion. The Toronto Stock Exchange's gold and precious minerals index soared almost six percent, which helped to cushion an overall drop in stock prices. The benchmark TSE 300 index was down 1.6 percent by late morning. The gold and precious minerals index, which accounts for about five percent of the TSE 300, has gained seven percent since August 31. ''With the U.S. dollar at long last declining, both for covert and open reasons, you're finding that the only haven that has worked for South Africans, Indonesians, Australians and even Canadians has been gold,'' said John Ing, president of Maison Placements Canada Inc. Gold bullion rose to $291.30 an ounce from Wednesday's $284 an ounce as renewed focus on U.S. President Bill Clinton's political problems sent the U.S. dollar tumbling to a 16-month low against the German mark. U.S. Capitol lawmakers were preparing to handle a report by special prosecutor Kenneth Starr which could accuse Clinton of impeachable offenses as a result of a prior relationship with former White House intern Monica Lewinsky. Mid-sized gold producers, such as Kinross Gold Corp. (Toronto:K.TO - news), were the big winners on the TSE 300. Toronto-based Kinross rose C$0.39 to C$3.93, or 11.2 percent, in moderate trading. Ing said he expected gold would continue to rise and break through the $300-an-ounce level soon.

To: Alex who wrote (18439)	9/11/1998 1:47:00 AM
From: Sergio R. Mejia	Respond to of 116753

Global markets get d‚j… vu blues Latin America and Clinton's increasing woes spur major losses worldwide - Gold and gold stocks shine again on weaker US$ - Cameco gives up on gold project in Uzbekistan By DAVID THOMAS Economics Reporter The Financial Post Worldwide, stocks were clobbered yesterday, as panicked investors stampeded out of Latin American markets and a dimming profit outlook weighed on exchanges in North America and Europe. A bounce in the price of gold boosted gold shares by 8.7% in Toronto, minimizing the damage to the Toronto Stock Exchange 300 composite index. It lost 75.01 points, or 1.28%. Elsewhere, the day's losses ranged from bad to disastrous as investors dumped equities and piled into the relative safety of bonds. The Canadian bond market had a banner day, with the 30-year government bond enjoying its largest one-day advance ever. The Dow Jones industrial average fell 249.48 points, or 3.17%, to wipe out most of Tuesday's huge 380.53-point gain and leave it just 76 points above its 1998 low on Aug. 31. "Concern that President [Bill] Clinton may face impeachment hearings is adding to the long list of troubles for the market," said Hildegard Zagorski, market analyst with Prudential Securities Inc. That long list includes the spread of financial strains from Asia to other emerging markets and the associated threat to western banks of exposure to risky debt. The risks of a currency devaluation and economic collapse were behind a 15.8% one-day collapse in the Bovespa stock index in Brazil. The index has lost more than 55% since the end of July and the mood darkened yesterday after Standard & Poor's Corp. warned it may cut the country's credit rating. Pain is also being felt in other Latin American markets, including Mexico, where the bolsa index tumbled 9.8% yesterday and is off nearly 40% since mid-July. European exchanges were also caught in the crossfire, with stock indexes falling as much as 7% in Madrid because of Spain's financial ties to Latin America. Other European markets took major hits, with indexes in Frankfurt and Paris dropping 4.3% and 4.6%, respectively. London's Financial Times stock exchange 100 fared slightly better, losing 3.3%. Bank stocks are particularly vulnerable, but the overall earnings picture has soured considerably because of the prospect of a sharp global economic slowdown. "We believe that a profits recession has already arrived and will deepen," said Bruce Steinberg, chief economist at Merrill Lynch & Co. "Growth prospects for every region of the world have deteriorated in recent weeks. Latin America is teetering on the brink. Arguably, the equity market has already discounted the earnings slowdown yet to come, but we believe that earnings expectations remain excessive and further earnings disappointments are guaranteed in the months ahead." Slower economic growth and the mounting prospect of lower interest rates in the world's leading economies are good news for bonds. U.S. Federal Reserve chairman Alan Greenspan signalled last week lower interest rates may be in the cards to keep the U.S. economy on track as the rest of the world slumps. Yesterday, the Bank of England also hinted a rate cut may be on the way. The U.S. bond market had a strong day, with the yield on the 30-year treasury long bond falling to a record 5.20%. The Canadian bond market did even better as investors were encouraged by stability in the C$ to return in a big way to Canadian fixed-income securities. The yield on the Canada long bond dipped as low as 5.45%, near the record low of 5.43% at its July 7 close. It finished the day trading with a yield of 5.51%.

To: Alex who wrote (18439)	9/11/1998 1:50:00 AM
From: Sergio R. Mejia	Read Replies (1) \| Respond to of 116753

Gold and gold stocks shine again on weaker US$ By DAVID THOMAS Economics Reporter The Financial Post Gold stocks surged yesterday, providing a single pocket of strength amid a growing bear market for most equities. The gold and precious minerals index of the Toronto Stock Exchange jumped 8.7%, after bullion gained US$6.30 an ounce - it closed at US$290.70 on the Comex division of the New York Mercantile Exchange. Analysts said the yellow metal, whose price bottomed out at US$274.60 Aug. 28, has regained some ground on the back of a weakening US$ and tumbling stock markets. "The price of gold tends to do well in large selloffs or crashes," said Martin Murenbeeld, an independent gold analyst in Victoria. Gold has failed to rally during other recent stock slumps, but this time weakness in the US$ helped propel the rebound. The US$'s slide against many currencies - including the C$ yesterday - is widely attributed to the growing threat of impeachment facing U.S. President Bill Clinton. Another factor driving gold higher, both yesterday and in the past week, is short covering by traders who have been profiting from the metal's recent slide, said Murenbeeld. Short sellers borrow securities or contracts and sell them with the intention of buying them at a lower price later and pocketing the difference. When the price slide reverses, short coverers can give prices an extra boost as they rush in to close out their transactions. After spending a brief time above US$300 in April and May, gold resumed its swoon in the summer, falling about US$20 from US$295 in mid-July to a 19-year low less than two weeks ago. In a dramatic turn of events, gold shares have been the best place to be in recent weeks. Since the TSE 300 hit bottom on Aug. 31, the gold index has been the top-performing sector, soaring 34.6%. The TSE 300 has advanced 4.8% in the same time. Bond markets, especially U.S. treasury bonds, have replaced gold as a haven for global investors during periods of volatility, but gold is making a bit of a comeback, said Dinsa Mehta, global head of commodity risk at Chase Manhattan Bank in New York. "The global financial market firestorm is cutting a bit close to the bone and that's helping gold. Gold is cheap insurance in a lower-interest-rate environment," he told Bloomberg News.

To: Alex who wrote (18439)	9/11/1998 2:28:00 AM
From: E. Charters	Respond to of 116753

Gold hits 440 dollars Canadian today. Well its back to the pick and shovel. EC<:-}