Replies to post #252 on PHLX Gold/Silver Sector (XAU)

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To:Arge who wrote (310)
From: John Barendrecht Tuesday, Jul 8, 1997 11:14 AM
Respond to of 80033

NY precious metals mixed early, gold bounces
NEW YORK, July 8 (Reuter) - COMEX gold and silver futures were higher Tuesday morning, on some light fund shortcovering, after six straight days of falls for gold, and three days of falls for silver futures.

But NYMEX platinum and palladium were lower as the resumption of Russian exports on July 10 draws nearer.

``We saw some buying in gold from a commission house and a bullion bank,'' Pell Brothers COMEX floor trader John Giapoutzis said.

``Support is seen around the August gold contract's lows at $314.60 which may be tested again ultimately, but for now it looks like we may see an inside range day,'' he said.

COMEX August gold was up $3.40 at $322.50 an ounce after the first hour of trade, after slumping to contract low at $314.60 Monday.

In the bullion market, spot gold was quoted $321.20/70, compared to the London Tuesday morning fix at $317.60

On Monday spot gold saw its lowest levels since 1985 around $313.60 an ounce, after news last Thursday that the Australian central bank had sold about two thirds of its gold reserves in the past six months.

Bullion bankers had been indicating privately for several months that central bank sales were being made, but most analysts expected the selling to come from a European central bank, not from the world's third largest gold producer.

However, bullion bankers say central bank mobilization of gold reserves is still going on, which will keep the pressure on the gold price.

COMEX September silver was up 4.5 cents at $4.330 an ounce early Tuesday, after seeing a fresh life-of-contract low at $4.175 an ounce early.

In the bullion market, spot silver fixed at $425.00 an ounce in London Tuesday morning, its lowest fix since November 3, 1993.

Silver was being dragged lower by ratio trades with gold, traders said.

The spot gold/silver ratio jumped to 74.2-to-1 Tuesday, its highest level since late January.

Meanwhile, NYMEX October platinum was off 70 cents at $392.00 an ounce, and NYMEX September palladium was down $5.25 at $164.50 an ounce.

Russia's metal export agency, Almaz, reiterated Monday it would resume exports of platinum and palladium this month, after a six month suspension.