Replies to post #165 on PHLX Gold/Silver Sector (XAU)

[long-gone]

To:long-gone who wrote (179)
From: John Barendrecht Thursday, Jul 3, 1997 11:34 AM
Respond to of 79916

NY precious metals mixed early ahead of holiday
NEW YORK, July 3 (Reuter) - COMEX and NYMEX precious metals futures were mixed in light volumes early Thursday, with the market winding down for the U.S. Independence Day holiday Friday.

COMEX and NYMEX close early Thursday and will be closed Friday for the July 4 holiday.

In addition, the New York Mercantile Exchange (COMEX and NYMEX) will be moving to a new building over the weekend and traders expect some minor disruptions to operations Monday.

``Locals bought gold on the open, expecting a shortcovering bounce ahead of the holiday but the rally failed, though the trade and bullion banks are now scale down buyers,'' North American Equity Services COMEX floor trader John Geraghty said.

COMEX August gold was up 80 cents at $333.10 after the first hour of trade, but saw a new contract low early at $332.0.

In the bullion market, spot gold was quoted $331.90/40, after seeing a London Thursday morning fix at $332.30, compared to the New York close Wednesday around $331.10/60.

Earlier Wednesday gold had fixed at $331.45, the lowest since March 24, 1993.

In addition to hedge fund shorting activity on COMEX and the OTC market this week, Australian producer hedging has been cited as a factor behind the gold price slide.

But early Thursday market talk in London suggested the Reserve Bank of Australia (RBA) may also have been selling.

But the RBA only holds 253 tonnes of gold in its reserves, according to the IMF's IFS data as of April 30, 1997. The RBA's total gold and foreign currency reserves were valued at $14.91 billion at that date.

While not ruling out an RBA sale, many analysts said it would be unlikely as Australia's economic data suggest few reasons why the RBA would need to sell gold, and the Australian gold mining industry is a relatively strong political lobby which would oppose the sale, analysts said.

COMEX September silver was up 1.5 cents at $4.6660 an ounce, after dipping to a new contract low at $4.620 early.

In platinum group metals (PGMs), NYMEX October platinum was up 80 cents at $407.50, while NYMEX September palladium was down $1.00 at $173.50.

But the physical PGM market was quiet, with the U.S. operations of key refiners Johnson Matthey and Engelhard both closed Thursday for the holiday weekend.