To:paul ross who wrote (296)
From: John Barendrecht Tuesday, Jul 8, 1997 12:05 AM
Respond to of 80032
TOCOM midday gold mostly up, other metals fall
TOKYO, July 8 (Reuter) - Yen-based Tokyo gold futures were narrowly mixed by midday on Tuesday as the yen's retreat helped prices recover from early lows, while other precious metals slipped, traders said. All silver futures tumbled by their six yen per gram daily limits, and activity was lacklustre.
Gold futures ranged from seven yen per gram lower to six yen up by midday. Benchmark June was up one yen at 1,147 yen.
``After gold futures were battered by heavy long-liquidation on last Friday and Monday, selling pressure eased today and gold prices posted a slight recovery in line with the currency market,'' an analyst at a commodity broker said.
Spot gold was quoted at $318.30/318.80 per ounce at 0234 GMT, against $318.20/70 in New York on Monday.
Traders said sentiment toward gold remained bearish.
Weaker spot prices pushed down silver and platinum group metal (PGM) futures. Traders expected Russia's long-delayed PGM shipments to Japan to resume this week.
Benchmark June silver fell by its daily limit of six yen per 10 grams to end the morning session at 157.2 yen.
Benchmark June platinum was off 19 yen per gram at 1,351 yen. Benchmark June palladium was down 18 yen per gram at 524 yen. --Tokyo Commodities Desk, +81-3-3432-7431
To:John Barendrecht who wrote (294)
From: John Barendrecht Tuesday, Jul 8, 1997 12:09 AM
Respond to of 80032
North says gold price hurts Cowal mine
JABIRU, Australia, July 8 (Reuter) - North Ltd said on Tuesday low world gold prices could further delay development of its Lake Cowal Gold Mine in New South Wales state.
The firm is currently seeking government environmental approval to develop the mine, estimated to produce an eventual 230,000 ounces of gold a year, making it the largest gold mine in the eastern Australian state.
Gold prices continue to plummet in the aftermath of Australia's central bank announcing last week that it had sold 167 tonnes of its gold reserves over the past six months.
Gold was fetching around US$318 an ounce in Asian trading on Tuesday, but has fallen below US$315.
``At US$313 we would not be in a rush to develop Lake Cowal,'' North Ltd Managing Director Campbell Anderson told Reuters.
Anderson said market sentiment was currently causing a flight from gold among investors.
Longer term though, robust demand for gold from consumers in Asia should help lift prices, Anderson said.
North is in discussions with the NSW state government to obtain environmental approvals for Lake Cowal mine.
The government in 1996 knocked back a proposal on environmental concerns.
North resubmitted a modified mine development proposal which Anderson said he hoped would win approval by the end of 1997.
North has already spent about A$26 million out of a estimated A$220 million on development of the mine.
Anderson said projected production costs at Lake Cowal would be in excess of the current bullion price.
The company's Kanowna Bell gold mine in Western Australia, however, was producing gold at a cost below world prices.
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