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

To: SwampDogg who wrote (29643)	3/9/1999 5:26:00 PM
From: Copeland	Read Replies (1) \| Respond to of 116762

Here's the actual article. Out at 12 noon. Gold off highs in late Europe, business brisk LONDON, March 9 (Reuters) - Gold fell from 11-week highs in late European business on Tuesday after its U.S.-inspired rise towards $294.00 ran into selling, dealers said. Gold began the week below $288.00 an ounce, before climbing almost $6.00 amid what dealers said was fund-inspired short covering in New York. It fixed in London's afternoon at $292.95, versus the morning's $291.90, its highest since December 17. But spot prices subsided after the late fix to be last at $292.20/$292.60, up $1.20 from Monday's New York close. ''The market is quite disappointed. I think if we do not see $295.00 by the end of the day then we could be looking at the mid-$280s again,'' said one London dealer. The price hike has sprung gold from the $4.00 range above $285.00 it had inhabited for weeks, breaching several technical resistance points in the process. The dealer said COMEX floor trade in New York, the main driver behind gold's moves this week, showed sizeable volumes of gold offered for sale. ''Gold is quite well offered on the floor and what's being offered is quite reasonable sizes,'' she said. Gerry Celaya, senior director of treasury at American Express Bank, also highlighted $294.00/$295.00 as a key target for gold to breach if it was to maintain its run. ''As long as it doesn't do much over $294.50/$295.00 I think we are going back down,'' he said, adding that he doubted gold was in for a sustained bull run. Silver fell as gold rose, prompting talk of gold/silver plays, before recovering as European trade neared its close. It was last at $5.27/$5.30, one cent below its New York close, with forward rates remaining tight. Platinum was $1.00 down at $375.00/$377.00 while palladium was $2.00 down at $344.00/$346.00. --- Here's Bridge News' market re-cap: NY Precious Metals Review Apr gold trims gain after 2-mo high 03/09/99 16:10 ET New York--Mar 9--After jumping to a 2-month high of $295.50 per ounce late gold simply fell back as the earlier buying "tailed off." Others maintained that profit-taking was the prime reason for the dip. Purchases by the large trade house had pushed gold over buy-stops in the last couple of days. "It hit a lot of stops and people are saying it's better not to be short this market," said one market player. Also bullish for gold is the recent rally in crude futures. "People are looking at this and saying it is constructive because it could lead to something inflationary," commented one trader. Sources speculated the trade house may have been conducting the buying for Chinese interests, or possibly even a Central Bank, although information remains sketchy. They noted that while the trade house's activities have been the catalyst behind the recent rally, over the last couple of days it had been selling at the peaks. "They've been trying to flush out the shorts. They're testing the market out, although it couldn't get through the $295.50 barrier," said one trader. "It's bound to be tested up here because it's in new territory," said James Steel, analyst at Refco. "It's to be expected that they take some profits." With most commodity prices remaining low, there's a good argument to make for gold to move higher, he said. He noted that gold was playing catch-up with recent price jumps in silver, platinum and palladium. Meanwhile, strong physical buying has been seen under the market at $290, although this dries up at the $295 level, said one trader. May silver settled down 4.8c at $5.24 per ounce amid quiet trade, essentially following movements in gold. ------ There you have it. Looks like the Asians are buying in, but they aren't going crazy yet. In other words, short term - bearish; long term -- bullish. My humble advice: Hope you sold into the rally today. Buy more on any significant pull back.