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

To: cool who wrote (22403)	10/29/1998 8:57:00 AM
From: Giraffe	Read Replies (1) \| Respond to of 116830

From Precise Buy Signals: Wednesday October 28, 1998 Buy Gold! It would seem that a strong one-day gain would be a sure sign of renewed buying interest & opportunity - in any market, particularly after several days of heavy selling. Quite often these one-day surges in price are "short-covering" (or "profit-taking" in the case of selling) - investors unwinding their short (or long) position. Each bar on this chart is the sum of price change for the two days following the last eight one-day gains of 3% or more in gold stocks. The average experience following a price spike is a 3% loss. Predictably, gold stocks gave back 3.3% intra-day today and have since rebounded impressively despite subdued gold action. Cycle work says a gold bottom is not due until mid-next week but the ability of gold stocks to erase a 3% loss the day after an 8% gain (without gold support) is indication of true buying interest (as opposed to short covering). If cycles are correct, this recommendation to buy gold stocks may be a bit premature but after the last sell signal, gold stocks dropped 22%. That decline should have wrung out excesses as it has revived a favorable technical picture for these stocks, including support at the 50-day moving average. Other work says this time period will be a MAJOR low in the price of gold and gold stocks.

To: cool who wrote (22403)	10/29/1998 9:06:00 AM
From: Giraffe	Respond to of 116830

U.S. labor costs rise strongly in third quarter WASHINGTON, Oct 29 (Reuters) - American workers' pay and benefits grew strongly in the third quarter of 1998, the government said on Thursday in a report showing tight U.S. labor market conditions continue to put upward pressure on labor costs. The Employment Cost Index -- a broad gauge of worker compensation closely watched by the U.S. Federal Reserve for signs of inflation in the economy -- rose a seasonally adjusted 1.0 percent after a 0.9 percent increase in the April-June period. U.S. economists surveyed by Reuters had expected a more modest 0.8 percent gain. Over the past 12 months as a whole, pay and benefits together rose a hefty 3.7 percent, picking up the pace from the end of last quarter's 3.5 percent increase. Wages and salaries advanced 1.2 percent in the three months ended Sept. 30 after a 0.9 percent rise in the prior quarter. That was the sharpest increase since a matching 1.2 percent rise in the second quarter of 1990. Benefit costs rose by 0.8 percent, the same gain recorded in the previous three-month period. In another sign that the U.S. labor market remained solid, the Labor Department said in a separate report that first-time applications for state unemployment benefits fell to 301,000 in the week to Oct. 24, down from 319,000 in the prior week and far below analysts' expectations of a drop to 315,000. Fed Chairman Alan Greenspan, who keeps a close eye on employment costs to help determine his monetary policy moves, earlier this month warned the data had failed to reflect a ''significant'' increase in real wages this year. But concerns over mounting inflation pressures are likely to be tempered by an expected slowdown in the U.S. economy caused by financial turmoil in many parts of the world. --------------------------------------------------------------------------------

To: cool who wrote (22403)	10/29/1998 5:46:00 PM
From: goldsnow	Respond to of 116830

Russia to mint gold coins for local investment 09:29 a.m. Oct 29, 1998 Eastern MOSCOW, Oct 29 (Reuters) - Russia's central bank and precious metals and stones agency Gokhran plan to mint and trade gold coins to help gold producers and oust the dollar from the economy, officials said on Thursday. ''The goal is to launch (gold coins) on January 1, but in my opinion that is not realistic. It will take at least five months,'' Tatyana Safonova, head of Gokhran's analytical department, told a news conference. Russia gold deposits are the second largest in the world, Safonova said, but the country did not have sufficient funds for mining and enriching industries. Most Russian gold came from low-cost placer deposits. She said the central bank and Gokhran planned to use proceeds from gold coins of up to 99.99 percent purity to support the industry, and would bolster the gold coin market by fostering trade on a local exchange. ''It will be an alternative to the dollar and will soak up excessive consumer demand for luxury items,'' said Mikhail Belyayev, deputy head of the analytical department at the central bank's Moscow branch. Only a few households buy gold now. Banks are allowed to export gold in bars and to sell them to households, but investors may only sell gold to banks, which stamp their names on the bars, and must pay 20 percent value-added tax when buying gold. Taxation of gold coins has not been decided, and Russia does not have a law on gold coin exports. Safonova said that last year banks bought 300 tonnes of gold and individuals bought seven tonnes this year, the level at which the bank and Gokhran estimated demand. She said there were no firm plans yet on how much gold would be used for coins. ((Julie Tolkacheva, Moscow Newsroom, +7095 941-8520 moscow.newsroom+reuters.com)) Copyright 1998 Reuters Limited. All rights reserved.