To:John Barendrecht who wrote (294) From: paul ross Monday, Jul 7, 1997 11:18 PM Respond to of 80032
One interesting thing to note is that gold held very well at the 340 level while all the Aussie gold was sold, and then tumbled only after the news was released. Another indication of a speculative selloff... Today's gold market sentiment is similar to that of the cattle market in early 96. The price was at 10 year lows, the supply outlook was at multi year highs, and demand was declining due to world's demand for leaner meats. Oprah did a show on how low the price of beef was going to go. The following week cattle prices turned around and rallied 40% over the next 6 months. F-cattle's chart looked similar to what gold's does now, about a 17% decline in the month preceding the turnaround... What would cinch it would be a Newsweek cover hailing the death of gold.
To:paul ross who wrote (296) From: Gary Monday, Jul 7, 1997 11:57 PM Respond to of 80032
Kaplans'gold market wrap up explains speculator's short selling is at a record high and commercials are very long on gold. This has historically been a bullish scenerio. He is long on gold and bullish.
To:Gary who wrote (297) From: John Barendrecht Tuesday, Jul 8, 1997 12:01 AM Respond to of 80032
Australian gold stocks slammed as bullion battered SYDNEY, July 8 (Reuter) - Australian gold mining shares tumbled again at the market opening on Tuesday as the precious metal's price again fell sharply in offshore trade.
The gold index was down over four percent early, bringing losses in the last four sessions to a whisker short of 17 percent.
Sector heavyweight, Normandy Mining (NDY.AX), opened nine cents or about seven percent lower at A$1.23, its lowest level in four and a half years and a loss in dollar terms of about A$450 million in market capitalisation since its A$1.52 close on July 2.
Others to slide included Resolute Ltd (RSG.AX) which was 11 percent lower at A$1.70, Great Central Mines (GCM.AX) was down 4.4 percent at A$2.20. Newcrest Mining (NCM.AX) dived 6.3 percent to A$2.83 while Acacia Resources (AAA.AX) lost 4.8 percent to A$1.38, its lowest level since listing and well less than half its record high of A$3.47, reached in June 1996.
``This is panic selling going on at the moment. People are jumping out in droves and things are being driven down so hard,'' said Hartley Poynton broker, Justin Hondris, noting that technical support around the 1,200 level had been lost.
``There is supposed to be a lot of technical support around the 1,200 mark in the gold index. It's fallen through that so it will be interesting to see how it fares.''
Offshore developments look like rendering no assistance to the beleaguered sector, with traders saying they had few reasons to be optimistic about the outlook.
``It's not looking very flash,'' said a depressed, bewildered broker at a Sydney-based investment bank.
``And indications are that short is the position to be in. It's hard to find reasons to buy when sentiment is the way it is.''
Looking further afield Hartley Poynton's Hondris said the effectes were not restricted to the the gold stocks.
``Its following through to the mining services area and assaying labatories. All these associated stocks are getting hammered,'' he said, citing labatories services group Scientific Services (SSE.AX) and contract miner Eltin (ELT.AX) as examples of the knock-on effect of the bullion price's plunge.
Scientific Services plumbed an eight week low of 75 cents before regaining ground to be 2.3 percent lower at 82 cents by 12.05 p.m. (0205 GMT).
At the same time, Eltin was at A$1.88, down 10.5 percent and at its lowest level for nearly a year. Fellow contractor MacMahon Holdings (MAH.AX) slumped seven percent to 92 cents while Ausdrill (ASL.AX) shed 5.3 percent to A$1.42.
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