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

To: long-gone who wrote (22877)	11/12/1998 12:16:00 PM
From: Alex	Read Replies (1) \| Respond to of 116753

11/12/98 - MIDSESSION N.Y. METALS: SHARPLY HIGHER IN TECHNICAL RALLY <Picture> New York-Nov. 12-FWN--THE PRECIOUS METALS COMPLEX IS sharply higher here today, with gold, silver and platinum either moving through or hovering just below key resistance levels. "This market is in a technically driven rally rather than a news-driven rally," commented Leonard Kaplan, chief bullion dealer with LFG Bullion Services. He pointed out gold has had a firm tone lately, considering that it has been able to avoid falling in the face of negative developments. "Over the last week, you had the dollar rising sharply, and yet the precious metals held," he said. He reminded that Friday"s Commitment of Traders Report showed the reportable non-commercial category--or funds-- moved from a net-long position of 15,791 contracts to a net- short position of 17,695. "And yet the market held," he continued. A floor trader reported there has been fund buying of both gold and silver futures so far this morning. A supportive factor has been a strong XAU index of stocks of gold and silver companies, he added. The XAU is currently up 4.95 at 81.40. Kaplan noted there have been reports out of Japan lately of significant physical buying of precious metals. "Even though the yen has dropped sharply against the dollar in the last three days, which makes gold and silver more expensive, think about what you would do if you were a Japanese investor," he said. "You"re not going to buy the stock market because that has been a very poor performer for a very long time." Yet, lately the return on Japanese T-bills has been negative, Kaplan continued. Thus, investors are reportedly turning to gold. "So throw into the pot the potential Iraqi war and throw in a market that has been locked in a very tight range for a while, and you have a recipe for what could be sharply higher prices," he said. Kaplan also noted the gold sentiment has been helped lately by reports earlier this week that the European Central Bank is considering increasing gold reserves. "The biggest fear out there is that the central banks in Europe are going to sell," he reminded. December gold moved through resistance that had been at $296. A floor trader put further resistance around $300, while Kaplan put the next level at $302.70. December silver has moved through resistance that had been seen at $5.13, with more anticipated at $5.18 and the low $5.20 area. More to follow...