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

To: C Hudson who wrote (19754)	9/25/1998 3:58:00 PM
From: Giraffe	Respond to of 116762

"There has been some pretty good buying in the market. I think what is going through is extended profit-taking but in our view, it is going to break $300.00 either today or next week certainly," one dealer said. Gold remained very volatile and dealers said if the metal held on to its present level, it could head another $15 higher. Gold soars to four-month high in Europe Reuters Story - September 25, 1998 11:27 Jump to first matched term LONDON, Sept 25 (Reuters) - Gold moved sharply higher in late European trade on Friday, reaching levels not seen in four months on extended short-covering and profit-taking by market participants, dealers said. Gold fixed at $298.10 an ounce in London in the afternoon -- its highest fix since May 26 this year. Spot gold was last quoted at $296.20/$296.70, down from the day's high of $299.80 but considerably up on the previous close in New York at $293.60/$294.10. Dealers said the yellow metal was pushed higher by fund short-covering, a weaker dollar and the prospect of a cut in U.S. interest rates. "There has been some pretty good buying in the market. I think what is going through is extended profit-taking but in our view, it is going to break $300.00 either today or next week certainly," one dealer said. Gold remained very volatile and dealers said if the metal held on to its present level, it could head another $15 higher. Gold lease rates also soared on Friday. The rate for one-month metal was up more than a percent at 1.70 from Thursday's 0.65 percent. Traders in the U.S. said central banks -- concerned about the weakening global economy -- were believed to be calling in the bullion they lent to investment funds earlier in the year which forced funds to cover their short positions. Bullion dealers in Asia and Europe said jitters about hedge funds closing short gold positions emerged after news of trouble at Long-Term Capital Management (LTCM), the Connecticut-based hedge fund hit by heavy losses in Russian debt markets. European dealers and analysts had earlier correctly called gold's rise but warned of a cap on prices as they reached the high $290s, when real or imagined short-covering by investment funds could run into producer sales. London dealers and analysts said the short-covering rally followed in the wake of the bailout of LTCM which had forced players to rethink their positions. "It is making people reassess all of their exposures. The supply of lending is now becoming more difficult," HSBC James Capel precious metals analyst Doug Upton said. Silver followed gold higher and was last at $5.20/$5.23 an ounce from the previous close at $5.15/$5.18. Platinum and palladium ignored the upwards trend in the complex. Platinum was last quoted at $357.00/$359.00 from the close at $357.00/$359.00, while palladium was quoted down at $284.00/$289.00 from the close at $285.00/$290.00