Do you want to get all the gold/mining treads onto this site as a huge amount
of repetition ajren

 

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ARTICLE TOOLS E-Mail This Article Printer-Friendly Format Most E-Mailed Articles TIMES NEWS TRACKER Track news that interests you. NYT Store Photo: Wapping, London, 1904Price: $195. Learn More. Find credible research to help you make informed business decisions.Click here to download a free White Paper Gold Hits New High on Surging EuroBy REUTERSPublished: December 2, 2003 Filed at 11:32 a.m. ET LONDON (Reuters) - Gold jumped in Europe on Tuesday to its highest in more than 7-1/2 years for the second session in a row as fund buyers seized on a surging euro and news that Barrick Gold Corp would reduce its forward sales to zero over time. The chief executive of Barrick said the firm would no longer sell its gold forward at set prices, announcing a change in its long-established hedging policy. Greg Wilkins told Reuters the world's third biggest gold producer and largest hedger would look at ways to reduce its forward sales program in a measured way. Advertisement document.write(''); ``This represents one of the medium term shocks I've been highlighting that could happen in the gold market and that is that we might see faster than expected producer de-hedging next year,'' said John Reade of UBS Investment Bank. ``They said they're looking at ways to reduce their hedge book but are not under pressure to do so. That means possibly buy back, possibly reducing their hedge book to zero over time -- that's the new bit,'' he added. The euro climbed to a record high against the dollar as sentiment on the U.S. currency remained negative given geo-political worries and a huge U.S. current account deficit that continues to overshadow strong U.S. economic data. A weaker U.S. currency makes dollar-denominated gold less expensive for holders of other currencies like the euro and the yen. Spot gold was quoted at $402.95/403.70 an ounce by 1605 GMT (12:05 p.m. EST) after hitting a high of $405.55 -- last seen in late February 1996. It also compared with $402.25/403.00 last quoted in New York on Monday. London dealers fixed gold on Tuesday afternoon at $401.35. The euro was at $1.2085/86 after hitting a new lifetime high of $1.2089 earlier. Dealers put key support at $395 and resistance at $405.00, with an eventual upside target of $415.00. Gold failed twice in recent sessions to dig in above $400 an ounce as speculators took profits and rolled long positions before the December contract went into delivery last week. But analysts said the market was poised for further gains having successfully crossed $400. Ross Norman of TheBullionDesk.com said: ``It wouldn't be surprising to see a small step back before moving higher again. We suggested we would see a high of $415.00 in the year -- I think we will see it at the closing end of the year. ``There have been very good volumes sold just above $400...but it looks like the bulls have been taking the high ground and we should still see good volumes going through for another week or so -- and of course the bulls love nothing better than a quiet market to give the price a lift.'' In other precious metals, spot platinum moved up again to a fresh 23-year high at $777.00 an ounce, ahead of a statement expected this week from Anglo American platinum on its production plans. The metal was last quoted at $775.50/780.50, compared with $769.00/774.00 previously. Silver cooled off from Monday's surge higher in line with gains on gold to a fresh 3-3/4-year high at $5.52 an ounce. The metal was last quoted at $5.48/5.50, from $5.44/5.46 late in New York on Monday. Palladium moved up to $188.00/193.00 from $186.00/193.00. Save 50% off home delivery of The Times
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Hi zarif.Thanks for a great post.
I never thought of the exchange rate issue :-Their sentence....

...a weaker U.S.currency makes dollar-denominated gold less expensive for
holders of other currencies like the euro and the yen.
I think this will cause gold to go higher.Opinions ? aj

Why is the price dropping ?
rgds aj

Sorry..

Above should be on the Goldprice thread.

This could be good ajren and others.

METALS STOCKS

Gold futures fall after 4-session climb

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 10:34 AM ET Dec. 4, 2003







SAN FRANCISCO (CBS.MW) -- Gold futures prices fell Thursday for the first time in five sessions, pulling shares of metals mining companies mainly lower.

February gold fell by $1.60 to trade at $403.20 an ounce on the New York Mercantile Exchange. The contract had gained $12.40 an ounce over the previous four sessions

"Some consolidation at these levels is to be expected," said Brien Lundin, editor of Gold Newsletter. "But the gold market has been consistently providing the unexpected -- often surging ahead just when everyone is anticipating a correction or consolidation," he said.

Lundin said he wouldn't be surprised if that's exactly what happens at this juncture. "While gold stock investors are worrying whether gold can hold these levels, the metal is hinting that it is ready to move forward once again," he said.

In the stock market, metals industry indexes traded mainly lower.

The Philadelphia Gold and Silver Index (XAU: news, chart, profile), traded at 110.56, and the Amex Gold Bugs Index (HUI: news, chart, profile) was down by 1.5 percent at 250.61.

The CBOE Gold Index ($GOX: news, chart, profile) traded at 92.6, down 1.7 percent.

"While gold stocks have been reacting favorably to gold's recent moves, they haven't been roaring ahead of the metal as some would expect," said Lundin.

"In fact, the mining equities have been climbing a wall of worry, and showing some lack of conviction that gold will hold above $400 after its recent, dazzling leap above that benchmark," he said.

Among the index components ending lower, shares of Coeur d'Alene Mines (CDE: news, chart, profile) fell by 34 cents, or 6.3 percent, to trade at $5.09.

The U.S. dollar provided little in the way of support for the gold market Thursday. The currency was mostly stable amid speculation that European officials may act to curb the greenback's tumble snapped a string of record highs for the euro. See Currencies Report.


cheers GF.

I think the last paragraph explains it :-Dollar stable...etc rgds aj

US REPORT TUESDAY.

Mining shares fall for a second day

Following the Federal Reserve's announcement Tuesday, metals mining shares closed near their lowest level in two weeks.

The shares fell Monday, after gains of around 1.5 percent last week.

Gebhard pointed out a recent article in the weekly publication Barron's that emphasized investment in gold bullion, rather than mining stocks, as the best way into the gold market.

The Philadelphia Gold and Silver Index (XAU: news, chart, profile) fell 2.9 percent to close at 107.83. The CBOE Gold Index ($GOX: news, chart, profile) also closed down 2.9 percent at 90.38.

The Amex Gold Bugs Index (HUI: news, chart, profile) fell 3.8 percent at 242.22.

All three indexes closed near the session's lows and at levels not seen since Nov. 26.

Among mining-index components, shares of Placer Dome Gold (PDG: news, chart, profile) fell 91 cents, or 4.9 percent, to close at $17.48 and Bema Gold (BGO: news, chart, profile) closed at $3.66, down 29 cents, or 7.3 percent.

cheers GF.

Hi gf ref sentence investing in gold bullion-reason for my goldbullion site rgds
aj

See STRONG INTEREST IN GOLD on my gold bullion thread rgds aj

METALS STOCKS

Gold slips, ends above session lows
Other commodities fall; metals shares on comeback trail

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 4:22 PM ET Dec. 11, 2003







SAN FRANCISCO (CBS.MW) -- Gold futures rebounded by more than $2 an ounce from their intraday low Thursday, and sector trackers for metals mining shares ended the session with gains of 3 percent.



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On the New York Mercantile Exchange, gold for February delivery closed at $405.40 an ounce, down $1.60. The contract fell to a low of $403.30 earlier in the session, its lowest level since Friday.

"The bottom line is that this market will remain choppy for some time, probably through mid-January," said Brien Lundin, editor of Gold Newsletter.

By the same token, Lundin is buoyant on the outlook for metals shares, saying investors are likely to see "some exceptional buying opportunities develop."

Against this backdrop, the sector's shares moved broadly higher, attempting to break a losing streak that has spanned the three previous sessions.

The Philadelphia Gold and Silver Index (XAU: news, chart, profile) rose 2.9 percent to close at 106.01, and the CBOE Gold Index ($GOX: news, chart, profile) added 3.1 percent to 88.78. Both barometers fell by more than 4 percent on Wednesday.

The Amex Gold Bugs Index (HUI: news, chart, profile), which lost 6 percent in the previous session, climbed back by 3.4 percent to 235.38.

Among mining-index components, shares of Freeport-McMoRan Copper & Gold (FCX: news, chart, profile) closed at $44.89, up $2.02, or 4.7 percent. Agnico-Eagle Mines (AEM: news, chart, profile) added 45 cents, or 4 percent, to close at $11.70, while Harmony Gold (HMY: news, chart, profile) rose $1.09, or 7.4 percent, to close at $15.75.

Goldcorp (GG: news, chart, profile) tacked on 60 cents, or 3.7 percent, to end the session at $16.68. Goldcorp said Wednesday that it sold 8.3 metric tons of gold, which it accumulated from production and market purchases since 2001 in a bet on higher gold prices, according to Lundin.

Shares of the company fell 5.5 percent Wednesday, but the news is actually bullish for gold, Lundin said. "The company sold its holdings during the current quarter, a time when the gold price was rocketing ahead," he said.

"The sales had zero effect on the gold prices and the company has begun ... holding back 10 percent of its production from sale in anticipation of even higher prices," he added.

Gold plays off dollar

For traders in the Nymex gold pit, the "dollar is still the short-term driver," said James Moore, an analyst at TheBullionDesk.com in London.

On Thursday, the dollar gained against the euro, but traded modestly lower against the yen -- providing a cloudy investment picture for gold. See Currencies report.

"Some year-end book squaring may emerge over the next couple of weeks," Moore said. He also said that while he believes the market will hold the $400 level, he doesn't see prices rising above $415 until early next year.

Prices could see a pullback all the way to $398 to $400, but "bargain hunter support will prevent the metal trading any lower," Moore said.


cheers gf.

Great article - very Positive.I know I keep repeating myself but I am certain
terrorism will get worse and dollar destabilise and gold up.rgds aj