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

To: Jim McMannis who wrote (31870)	4/16/1999 9:28:00 AM
From: Ken Benes	Read Replies (1) \| Respond to of 117013

Jim: Gold is at a very interesting point. 285.00 is a formidable level of resistance and gold could easily be beat back by any number of leaked information about pending gold sales. However, we are in an environment where Asia seemly is recovering to a degree, oil prices have risen, and demand for other commodities are rising. It would be difficult to maintain 285.00 gold with rising commodity prices. To me it would appear, the the cb's may use further sales to cover the enormous short position in gold. If the world economies are recovering, the liquidity provided by gold sales will not be as indispensable as it has been. Few on this board realize that gold as a store of value has been used very effectively by the central banks in helping stabilize the currency debacle of the past several years. This policy was carried out in a very orderly manner and I suspect once the determination is made to cover the short positions, that will also be done without causing market dislocation by buying gold in the open market. It this should ensue as I suspect a move in the gold price to the 315+ area is a distinct possibility over the next six months to a year. Ken