Market Report (1/24/00):
The yellow metal was bounced
around a bit in overnight trading, with U.S. selling
in early London trade cited for a brief dip toward
$286 before being lifted again on short covering.
Selling pressure re-emerged when the New York markets
opened, retesting the early London low. As we fetch
this over to the server the spot price is hovering
near $286.80. Trading is largely expected to remain
rangebound, with all eyes on tomorrow's auction of 25
tonnes of the precious metal by the Bank of England on
behalf of HM Treasury. This auction is to be conducted
as the three before it, with an 11:30 am London Time
deadline for bid submissions from eligible bidders --
LBMA members, central banks, and other international
monetary institutions holding gold accounts at the
Bank of England. Until results of the auction are
announced by 12:15 pm London Time, market participants
are said to be staying on the sidelines, worried about
the possibility of a knee-jerk reaction to the
outcome. To date, each of the previous auctions have
been followed by significant price movements. Few are
apparently willing to predict whether this possible
break from gold's narrow January trading range will be
to the upside or to the downside. However, Standard
Bank of London reports that U.S. funds have been gold
buyers over the past week, which might point to their
expectation of prices breaking higher following the
auction. Standard notes, "The outcome is (as ever)
difficult to call but with metal prices generally
firm, and oil prices at 9-year highs the prospect for
a break above $290 looks good."
alles klar?
IZ
The yellow metal was bounced
around a bit in overnight trading, with U.S. selling
in early London trade cited for a brief dip toward
$286 before being lifted again on short covering.
Selling pressure re-emerged when the New York markets
opened, retesting the early London low. As we fetch
this over to the server the spot price is hovering
near $286.80. Trading is largely expected to remain
rangebound, with all eyes on tomorrow's auction of 25
tonnes of the precious metal by the Bank of England on
behalf of HM Treasury. This auction is to be conducted
as the three before it, with an 11:30 am London Time
deadline for bid submissions from eligible bidders --
LBMA members, central banks, and other international
monetary institutions holding gold accounts at the
Bank of England. Until results of the auction are
announced by 12:15 pm London Time, market participants
are said to be staying on the sidelines, worried about
the possibility of a knee-jerk reaction to the
outcome. To date, each of the previous auctions have
been followed by significant price movements. Few are
apparently willing to predict whether this possible
break from gold's narrow January trading range will be
to the upside or to the downside. However, Standard
Bank of London reports that U.S. funds have been gold
buyers over the past week, which might point to their
expectation of prices breaking higher following the
auction. Standard notes, "The outcome is (as ever)
difficult to call but with metal prices generally
firm, and oil prices at 9-year highs the prospect for
a break above $290 looks good."
alles klar?
IZ
