Gold unfazed by U.S-Iraq tension, Indonesia attack<\/p>\n
Reuters
\nLondon<\/p>\n
Gold ticked over in European trading on Monday, losing ground
\nslightly as traders showed reluctance to take positions on the
\nU.S. Labor Day holiday.<\/p>\n
Spot gold was quoted at US$312.25\/312.75 a troy ounce by 08.59
\nGMT (3.59 p.m. Jakarta time), down from the New York close of
\n$312.50\/313.00 and off the 2-1\/2 year high of $330.30 an ounce
\nhit last June.<\/p>\n
\"Gold looks likely to trade in a range of $311-314 awaiting
\nthe markets to return from the Labor Day holiday in the U.S.,\"
\nsaid John Reade, metals analyst at UBS Warburg.<\/p>\n
Bullion largely shrugged off tension between Washington and
\nIraq, strong oil prices and worries over a near-term appreciation
\nof the dollar, dealers said.<\/p>\n
The market also ignored news of an attack on a convoy of
\nvehicles carrying mainly U.S. nationals near a mine in
\nIndonesia's Papua province.<\/p>\n
Operations of the mine, the world's largest copper and gold
\nmine, were not disrupted, the owners, U.S.-based Freeport-McMoRan
\nCopper and Gold Company, said on Sunday.<\/p>\n
\"Most participants expect the market to be quiet until at
\nleast Tuesday,\" Standard Bank London said in a report on its
\nwebsite.<\/p>\n
Signs that leading gold miners were continuing to reduce their
\nforward sales of the precious metal -- a major factor behind's
\ngold's rally over the last 18 months -- also failed to inspire
\ngains.<\/p>\n
Miners reduced their hedge positions by 365 tons or 11.7
\nmillion ounces in the first six months of this year, a survey by
\nJ.P. Morgan showed, industry web site theminingweb.com reported.<\/p>\n
The figure represents almost one fifth of all the gold mined
\nin the first half of 2002 and suggests more producers are willing
\nto live or die by market-driven prices.<\/p>\n
Hedging -- selling yet unmined gold forward at fixed prices --
\nis a tactic to lock in revenue and thwart cyclical downturns in
\nbullion prices. But in a rising market, miners risk being forced
\nto sell their caches below current value.<\/p>",
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"sponsor": "Okusi Associates",
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