gold plus ,

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    Interesting program on sbs re gold last night although I didn't understand how or why 5 ?dealers/ countries were trying to agree on a spot price , can anyone explain what it was about ?

    DJ NY Precious Metals Review: Small Declines On Profit-Taking


    Profit-taking knocked gold and silver futures lower in New York Friday.
    However, traders and analysts suggested the pullback was used as a buying
    opportunity in a bullish market, enabling the metals to trim their initial

    December gold fell 80 cents to $474.80 an ounce, while December silver
    slipped 2 cents to $7.82 an ounce.

    Gold had traded as low as $471.20 and silver as low as $7.72, before both
    recouped most of their losses into the close.

    "We had end-of-the-month profit-taking in both metals," said a Comex floor
    trader. "The last day of the month is Monday, so ahead of the weekend, people
    were taking some profits. They got out of their longs.

    "Toward the end of the day, we saw the true market direction come back. We
    saw new money coming back in when there was a dip (at which) to buy the

    This buying largely came from speculators anticipating more gains in these
    metals, he said.

    "It's just a great bull market," said Peter Grandich, publisher of the
    Grandich Letter. "It pulls back a little and then finishes strong.

    "Once again, the bears tried to knock gold. But its internal strength, which
    has been supported by physical and investment demand, just outweighs the bear
    pressure. The market corrects itself and the least resistance is up."

    There are factors driving the investment demand beyond market participants
    simply betting the uptrend will continue, he said.

    "There's an ever-increasing geopolitical concern in the price of gold, not
    only abroad, but in the U.S. with all of the potential problems that the
    current administration is having."

    Meanwhile, Grandich said, jewelry demand "continues to surprise everybody
    with its strength." He pointed out, however, that the strong demand from India
    is for not only jewelry but also as an investment.

    A couple of traders commented that the stronger tone in the U.S. dollar
    brought some selling into the gold and silver. However, one noted, the metals
    have not been following the euro as close as usual in recent months, and the
    metals recovered most of their Friday losses even though the euro remained
    around its weakest levels of the day.

    As gold was closing, the euro had fallen to $1.2053 from $1.2141 late

    One trader suggested some technical buying could occur in December gold if
    the market gets through the area around $477.80 (Thursday's high) to $480 (the
    Oct. 17 high). Above this, he listed the Oct. 12 high of $483.10.

    Another trader commented that buy stops lie in December silver around $7.955,
    the high back on Oct. 11.

    Meanwhile, the Platinum Group Metals were slightly mixed. January platinum
    lost $2.10 to $941.80, while December palladium added $1.35 to $230.30.

    Traders reported more speculative buying in these metals but also
    profit-taking by longs. However, activity was muted ahead of the weekend.

    "It's a Friday," said one. "People were taking a break. There were no

    Grandich commented that speculative investment demand has been underpinning
    these metals lately. This has been most notable in palladium, after this market
    had been "depressed" for an extended period of time before a run-up this month,
    he said.

    Settlements (open-outcry trading only):
    London PM Gold Fix: $470.75 Versus $474.40 Thursday
    U.S. spot gold at 1:42 p.m. ET: $473, down 55 cents from
    previous day; Range: $469.60-474.80
    December gold (RGCZ05) $474.80, down 80 cents; Range
    December silver (RSIZ05) $7.82, down 2 cents; Range $7.72-
    January platinum (RPLF06) $941.80, down $2.10; Range $941-
    December palladium (RPAZ05) $230.30, up $1.35; Range

    -By Allen Sykora, Dow Jones Newswires; 541-318-8765;
    [email protected]

    (END) Dow Jones Newswires

    10-28-05 1413ET

    Copyright (c) 2005 Dow Jones & Company, Inc.
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