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To: BigTex who wrote (2578)	9/13/1998 4:04:00 PM
From: Mr Metals	Respond to of 5908

Canadian gold stocks climb on international turmoil By Paul Simao TORONTO, Sept 11 (Reuters) - Canadian gold stocks began to shed their anemic image on Friday as political uncertainty in the United States and fears of a growing financial crisis in Latin America pushed bullion prices to a three-month high. Gold and precious minerals stocks gained an average two percent on the Toronto Stock Exchange, Canada's most important stock market, helping to sustain a 37-percent rally over the past two weeks. A falling U.S. dollar, the safe-haven of choice recently for skittish international investors, once again boosted confidence in gold. Gold bullion touched a high of $296 an ounce on Friday before profit-taking took it back to $293.40 an ounce. Gold closed at $290.20 an ounce on Thursday. Nervous investors dumped the U.S. dollar as questions about U.S. President Bill Clinton's ability to survive a growing political crisis continued to swirl in international equity and foreign exchange markets. A contrite-sounding Clinton appealed yet again for forgiveness on Friday as U.S. lawmakers released to the public part of a report detailing his extra-marital affair with former White House intern Monica Lewinksy. The report by independent counsel Kenneth Starr could trigger a move to impeach Clinton and terminate his presidency. "Clinton's White House problems are all casting doubt on the U.S. dollar, so gold has regained its traditional safe-haven characteristics. It was de-linked for a while, but my expectation is that the restoration will be beneficial to the gold index," said John Ing, president of Toronto-based brokerage Maison Placements Canada Inc. Renewed fears that a global economic downturn may soon engulf Latin America added to gold's renewed luster. Although gold had not benefited from months of financial turmoil in Asia and Russia, the prospect of the contagion sweeping through Brazil and Mexico, prompted worries the U.S. economy, particularly its banking system, could become vulnerable. Ing said he expected Canadian gold stocks would continue to edge upward as gold threatens to breach the key psychological $300-an-ounce level. Mid-sized gold producers, such as TVX Gold Inc. <TVX.TO> and Goldcorp Inc. <Ga.TO>, were the big winners on the benchmark Toronto Stock Exchange's 300 index. Gold and precious minerals account for five percent of the TSE 300. Toronto-based TVX climbed C$0.30 to C$3.40 a share, or 9.7 percent, while rival gold producer Goldcorp rose C$0.70 to C$6.90 a share, or 11 percent. Some analysts warned the current bullishness toward gold might be premature. Canada's gold stock index remains firmly planted in negative territory, having lost 10 percent of its value since the beginning of the year. "I think this is more of a short-term rally. Every time we get a little rally in gold, people think there has been a sea change in the industry. The market has been fooled so many times and I see no reason why this is such a remarkable change," said Manford Mallory, analyst with Toronto-based brokerage Research Capital Corp. Mallory said it would be difficult to sustain the price of gold much above $300 an ounce during the next two years. ($1=$1.51 Canadian) 18:42 09-11-98 MM

To: BigTex who wrote (2578)	9/13/1998 4:05:00 PM
From: Mr Metals	Respond to of 5908

Gold Rises on Weaker Dollar, U.S. Political Crisis New York, Sept. 11 (Bloomberg) -- Gold rose 1 percent to a two-month high as investors sought haven from volatile stock markets and a declining dollar. Though interest-bearing assets in U.S. bond and money markets have been favorite refuges from economic turmoil around the world, recent instability in the U.S. now is driving investors to gold. ''The trigger for gold this week was the dollar weakening, which as been exacerbated by the (President Bill) Clinton political situation,'' said Vincent Lanci, a managing partner at Berard Capital Management in New York. ''This week has been the first time that there's been troubling things happen in the U.S.--signs of domestic deflation, a weak dollar and volatile stock market; and a crumbling political situation.'' Gold for December delivery rose $3, or 1 percent to $296.80 an ounce on the Comex division of the New York Mercantile Exchange, the highest for a most-active gold contract since July 1. In London, gold for immediate delivery rose $3.30 to $293.75 an ounce during interbank trading. Gold pared an early jump above $300 an ounce after President Bill Clinton, in a televised broadcast, issued his most sweeping apology to date, saying he sinned and asking for forgiveness from former White House intern Monica Lewinsky, with whom he has admitted to having an affair, and her family. Clinton stated that he will intensify his efforts in leading the U.S., a sign that won't consider stepping down as President. ''Even though gold retraced its gains a little, the Clinton problems are going to drag on and the mess won't be settled for a long time,'' said Marty McNeil, a trader at Sinclair Group, part of L.F. Lafferty in New York. We're going to have a volatile period of gold price moves and overall, there are a lot of pluses for gold at the moment.'' On the Internet While Clinton's comments did help lift U.S. stocks, they came as the U.S. House of Representatives released on the Internet Independent counsel Kenneth Starr's report on his investigation into Clinton's relationship Lewinsky. So far, Clinton's lawyers said his attempts to keep the affair with Lewinsky a secret, were a ''private mistake'' and don't amount to impeachable offenses. A resolution approved today by the House of Representatives begins the formal constitutional process of considering possible impeachment of Clinton. The submission of the Starr report to Congress ''pushed the spot gold price through $290'' and that triggered more buying said Rhona O'Connell, an analyst at T. Hoare. & Co. in London. ''We are at the stage where people are just looking for a way to escape the volatility, they're not looking for a return on investment,'' said Fredric Panizzutti, head of research at MKS SA, the finance arm of MKS Ltd., a Swiss precious metal refiner. ''We're talking about the U.S. now,'' Panizzutti said. ''Before, the problems were in Asia and Russia.'' Also, diving Latin American markets are causing concern that some big U.S. trading partners will reduce demand for American goods, harming exporters' profits. Brazil today boosted its benchmark interest rate to 49.75 percent, up 20 percentage points, to stem an outflow of capital that may force Latin America's biggest economy to devalue its currency. The dollar today fell as low as 129.15 yen, its weakest since April 15. 16:39:50 09/11/1998 MM