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

To: Hawkmoon who wrote (29612)	3/9/1999 7:44:00 AM
From: George Castilarin	Read Replies (2) \| Respond to of 116762

Tuesday March 9, 7:06 am Eastern Time London gold fixes at 11-week high, eyes upside LONDON, March 9 (Reuters) - Gold fixed at an 11-week high in London on Tuesday after overnight U.S. fund short-covering cracked key resistance to leave dealers eyeing $294.00 and guessing if and when miners might sell the rally. Gold fixed at $291.90 a troy ounce in the morning, up on Monday afternoon's $289.50, its highest level since December 18. Two bursts of fund short-covering in New York hiked prices more than $3.00 on Monday, knocking out various technical resistance points to leave prices pausing for breath in Europe. Spot gold was last steady at $292.50/$293.00 versus Monday's close of $291.00/$291.50 in New York. ''$292.00 seems to be fair value,'' said one London dealer. ''Obviously with the huge open interest on the COMEX, we'll have to wait until U.S. dealers get in to see how the afternoon develops,'' he added. Data for COMEX trader positions released by the U.S. Commodity Futures Trading Commission on March 1 showed net short positions at more than 6.6 million troy ounces on February 23. The size of the position, effectively a bet that gold prices would fall, prompted talk of market susceptibility to a short-covering rally. ''With a large section of the market still short, there is potential for further gains today. We would anticipate initial resistance into $293.50,'' said another London dealer. Rhona O'Connell, metals analyst for brokers T.Hoare and Co., said Australian miners had already been active hedgers in recent weeks and suggested South African or North American miners might be more likely sellers into the rally. That said, sales might waver in the rally's momentum. ''When the market starts moving, firm sell orders tend to become good-'til-close,'' she said. New York pushed spot gold above all the moving averages analysts usually chart, leaving the 10-day figure at $287.10 and the more significant 200-day average at $290.31. It also breached a downtrend dating from mid-January, which came in at around $288.50. ''Another, higher close today will confirm that we are very quickly going to test above the $299.00 level,'' said Paul Nesbitt, T.Hoare and Co.'s technical analyst. Silver was at $5.30/$5.33, up two cents on its U.S. close. Platinum was 50 cents down at $375.50/$377.50 while palladium was $3.00 lower at $343.00/$348.00.