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

To: Jim McMannis who wrote (33376)	5/7/1999 4:15:00 PM
From: Ken Benes	Respond to of 116764

Jim: The timing of the gold sale by Britain is a good indication of the importance of stopping the rise in the gold price. They do not even wait to get above 295.00, it is so critical to stop gold from rising that they hit it at crucial support levels. Had gold broke thru 290, there would have been a short covering rally. With the bond moving above 5.75, they could not take the chance of this snowballing in the current environment. To insure that they got the desired effect, Britain announced that the gold would be released directly into the market at auction on a specific date. This is a first. The capping of the gold price has succeeded once again. Unfortunately, it is going to be more difficult manipulating interest rates, the value of the dollar, and the resurrection of the Asian countries. As those three markets evolve, gold will take care of itself, trailing badly at first, and then making its move from a drafting position to a leading position. This scenario will be unfolding over the next year or so. If the gold companies can exhibit some discipline and not slobber all over themselves selling forward at the first opportunity, they will increase the pressure in the gold market. But as surely as Mr. Munk thinks he is the smartest person in the whole wide world, you can be sure that they will deliver the gold in their own limos at the first opportunity. Ken