GOLD - WHAT GOES UP, MAY ALSO COME DOWN

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    Oz Equities publishes opening, midday, closing, "Hot & Spicy" and special features on a daily basis.

    In this evening's edition of "Hot & Spicy" (just received @4.53pm), Oz Equities has raised the suggestion that the recent rally in global gold prices may be short-lived due primarily to the reasons behind the buying (if the rumours are correct).

    According to Oz Equities, "Apart from Japanese buying of gold now that their savings are no longer guaranteed by government, Middle East tension, reduction of gold hedges by the producers and a newly fashionable return to value investments, the rumor running around the market today was that a JP Morgan trader has been caught short gold, with covering of the positions contributing to a large part of the recent strength.
    (It will be remembered that the Gold Anti-Trust Action Committee (GATA) LED BY Reginald H HOWE sued several parties including the Bank for International Settlements, Alan Greenspan, Fed Reserve chief of New York William J McDonough and JP Morgan - which at least in June 2000 had $US29.7bn notional amount of gold derivatives, according to GATA)."

    "Interestingly, in a technical view of gold last week JP Morgan called the yellow metal up to $US340 an oz."
 
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