Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Alex who wrote (23937)	12/7/1998 1:23:00 PM
From: Stephen O	Read Replies (1) \| Respond to of 116762

Gold Gains on Investor Concern About Equity Markets 12/7/98 11:27 New York, Dec. 7 (Bloomberg) -- Gold rose almost 2 percent, the biggest jump in three months, as concern that U.S. stocks may retreat from recent highs led some investors to seek other assets. Gold has climbed 10 percent from a 19-year low at the end of August, partly on buying by investors seeking refuge from volatile equity and currency markets. Even with the Dow Jones Industrial Average close to the record high reached in late November, some investors are concerned the stock market will slip by the end of the year. ''We're still in an environment of risk with respect to the U.S. stock market, and that's kept some investment buying of gold,'' said Fredric Panizzutti, head of research at MKS Ltd. in Geneva, which trades and refines gold. ''If the dollar loses strength because of the U.S. stock market, it will boost'' already strong demand from jewelers, as well, he said. Gold for March delivery rose as much as $5.20, or 1.8 percent, to $299.50 an ounce on the Comex division of the New York Mercantile Exchange, the highest price since Oct. 19. If the contract settles at that price, it would be the biggest one-day gain since Sept. 10. March silver climbed as much as 6.3 cents, or 1.3 percent, to $4.85 an ounce on the Comex. In London interbank trading, gold for immediate delivery jumped as much as $4.80, or 1.6 percent, to $297.25 an ounce; while spot silver rose as much as 7.5 cents, or 1.6 percent, to $4.86 an ounce. Also lifting gold was robust demand from jewelers, particularly in Europe, during their peak demand season, Panizzutti said. Concern about U.S. stocks was reflected in comments from George Soros, head of hedge-fund management company Soros Fund Management LLC, who told a news conference in London that global stock markets still are in a bear phase because of deflationary pressures in the world economy. ''Soros said he remains bearish on equities, which shows the market turmoil is not over,'' Panizzutti said, noting that economic problems in Latin America, particularly Venezuela, could spill over and ''increase risks in emerging markets.'' Commodities are the cheapest they've been in 21 years, according to the Bridge-Commodity Research Bureau index that tracks 17 commodities, including gold. Prices for oil, metals, livestock and grains all are down from a year ago, pushed down partly by weak demand in Asia. Still, gold prices are 2.6 percent higher than a year ago, boosted in part by robust demand from jewelers who normally increase buying for the holiday gift-buying season beginning this month. --Samantha Zee in the New York newsroom (212) 318-2327 and Mark Deen in London (44) 171-330 7448/jb