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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: lorne who wrote (5765)	5/2/1999 8:32:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 81665

I wonder if we should keep our eyes on follow ups of this older story asia1.com.sg ie China and gold reserves

To: lorne who wrote (5765)	5/2/1999 8:53:00 AM
From: Bill Murphy	Respond to of 81665

lorne, Thanks much. Taking it all with me to read over breakfast. Bill

To: lorne who wrote (5765)	5/2/1999 11:47:00 AM
From: Bill Murphy	Respond to of 81665

Lorne, Jim Saxton told me he would take all of what we had to say to Jim Leech. Is there any official Leech comments out there on the net the last 3 or 4 days. See USA Gold story. Bill MARKET UPDATE (4/30/99): Gold registered a small gain in today's early going after yesterday's break out late in the session which pushed spot gold past the $285 resistance level and into fresh territory. Yesterday's break came after the release of open interest data which showed the highest number ever for a gold futures contract -- news which touched off a wave of short covering. Also, sparking the short covering were reports from Washington that both the Democratic administration and Republican Congress were interested in regulating hedge funds both here and abroad. Rumors have abounded in the gold market that hedge funds, like the troubled Long Term Capital Management, are heavily involved in the "gold carry-trade" wherein the funds borrow gold at a very low interest rate, sell it and then use the proceeds for highly leveraged speculative investments. In an ancillary development Senate Banking Committee chairman James Leach questioned the bailout of LTCM by a consortium of banks and investment houses as a possible violation of anti-trust laws. Any unraveling of LTCM could include an unraveling of a rumored gold loan position of between 300 and 1000 tons which in turn could cause a wild scramble for physical gold in the open market. Standard Charter Bank of London has now moved the resistance level for gold to the $288-$290 area. Bridge News reports an interesting statement by South Africa's Anglogold which blames gold's malaise not on talk of IMF and Swiss sales but on the banking and investment sector that "seems to ignore any and all good news on gold and which follows a policy of recommending selling on every improvement in the gold price, no matter how modest." Crude oil moved still higher this morning to its highest level since December of 1997 ($18.83/bbl June). The gold market is also reacting to the fact that the major G-7 nations were unable to come to agreement on IMF gold sales earlier in the week and the realization that any sales by Switzerland would be extended over a ten year period so as to no hurt the overall market.