from gata on gold

  1. 374 Posts.
    Note that this refers to Thurs trading in the US but it's still interesting in light of what happened to gold last night...

    5:30a PT Friday, January 24, 2003

    Dear Friend of GATA and Gold:

    What's appended here seems awfully unusual -- an
    open invitation to an imminent short squeeze in the
    gold market, published in the Financial Times, no

    It would be a shame to miss such a party.

    CHRIS POWELL, Secretary/Treasurer
    Gold Anti-Trust Action Committee Inc.

    * * *

    Gold strengthens further on speculative buying

    By Adrienne Roberts
    Financial Times
    Friday, January 24, 2003

    Gold strengthened again on Wednesday night
    as aggressive speculative buying set in after the US
    close. The metal hit a six-year high of $364.50 an
    ounce in Asian trade, fixing at $364.70 yesterday
    afternoon in London.

    Jeffrey Christian at CPM Group suggested that
    speculators were positioning themselves to take
    advantage of a possible price spike caused by
    congestion in the New York market at the end of
    this month.

    The February Comex futures contract becomes
    deliverable on January 31. Mr Christian said
    speculators were betting that people who sold the
    February contract would find it hard to get the
    physical gold they need to deliver against their
    February positions.

    "They will thus want to buy offsetting February
    contracts while either closing out these short
    positions or rolling them forward into future delivery
    months," Mr Christian said.

    He pointed out that as of January 21 there was a
    total of 11.2m ounces of open interest in the February
    Comex futures contract, compared with only 1.7m
    ounces of bullion stocks registered against Comex

    Yesterday in New York, Comex February gold futures
    also settled at $364.70, $4.80 or 1.3 per cent higher.

    Crude oil futures lost ground after weekly data showed
    an unexpectedly large increase in US crude oil

    Energy Information Administration (EIA) figures showed
    a 1.5m barrel rise in crude stocks, with the American
    Petroleum Institute (API) reporting a 181,000 barrel

    Still, the overall US fuel picture remained tight.

    "Last week, the difference between total inventories
    and their five-year average was 37.1m barrels. This
    week the gap has ballooned out to 44.1m barrels,"
    said Paul Horsnell at JP Morgan Chase.

    By the close in London, March Brent was down 62
    cents at $29.72 a barrel, while in New York, March
    WTI closed 60 cents lower at $32.25 a barrel.

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