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To: The Street who wrote (5376)	10/5/1998 3:13:00 PM
From: DebtBomb	Respond to of 119973

Gold and the IMF news: Euro Precious Metals Review Gold, silver extend retreats 10/05/98 07:25 ET London--Oct 5--Spot gold and silver both increased their declines this morning after poor closes Friday in New York and follow-through weakness overnight. Renewed talk of potential gold sales by the International Monetary Fund and a 1.04 million ounce rise in the latest COMEX silver stocks report helped send prices down in Europe. Spot gold traded at around $298.60-299.10 here, off a high of $300.35 in Asia and a peak of $303.30 last week. A "few waves of selling" were cited today, and dealers suggested that the market had become a little too long during the recent rally, and the bears were encouraging today's shake-out. Sources also pointed to comments by UK Chancellor of the Exchequer Gordon Brown that the new German government was showing signs of softening its opposition to gold sales by the IMF to raise money to reduce debt owed by very poor countries . The proposal for the IMF to sell part of its gold reserves to finance debt relief has been hotly debated at IMF meetings for years, but has been most resisted by the German government. But technically, while support at $297.50-298.00 held, the outlook for gold was seen as still positive and one dealer argued prices would likely get back above $300 before too long. Economic woes continued to support the view gold should attract fresh interest, and sources warned that any failure to recover $300 during the uncertain financial climate would be a seriously negative development for the metal. "A sign of just how nervous investors are at present comes from the latest US coin sales data. Sales of US Eagle gold bullion coins jumped sharply in August to 255,000 ounces--the highest monthly level since the coin was first launchangeded since shortly after the coin was launchangeded in December, 1986. "In a world of potential deflation cash is king. In a world of deflation and concerns about banking stability gold is king. We have not got to the later stage yet, but if the current situation deteriorates, then there could be a huge surge in investment demand for gold," argued GNI Research. Silver fell to a low of $5.16 today after the 1.04 million troy ounces build in COMEX stocks was reported. Key support was seen at $5.15 and expected to hold, especially if gold recovers. But dealers were wary of further declines in silver--unless gold really took off on the upside and lent a generally more bullish tone to the precious metals complex as a whole. Spot precious metals prices are in US dollars per ounce: London 1100 GMT Tokyo 0630 GMT Late New York Gold (KRCGL) 298.60-299.10 299.40-299.90 300.30-300.80 Silver (KRCSL) 5.13-5.17 5.20-5.24 5.19-5.22 Platinum (KRCPL) 344.00-346.00 347.00-349.00 348.00-350.00 Palladium (KRCPA) 278.00-283.00 278.00-283.00 278.00-283.00