Gold prices touch two-month high; shares of metals companies edge higher By Myra P. Saefong CBS.MarketWatch.com Friday, March 9, 2001 NEW YORK (CBS.MW) -- Gold futures prices climbed to their highest level in two months Friday, as a continued rise in gold lease rates resulted in increased bank lender buying of the precious metal. Shares of metals edged higher on the back of gold's price gains. The one-week and one-month lease rates were around 6.5 percent to 7 percent Friday morning, a rise of some 1.5 percent to 2 percent from Thursday's levels, Dave Meger, a senior metals analyst at Alaron.com in Chicago, said in an e-mail update. When the lease rates or amount of money paid to borrow gold climbs, bank bullion lenders must buy back the precious metal on the market to return it to the central bank and make it available to investors who want to borrow it. Meger attributed the price climb to "fund short covering and alternative investment demand as well as the rising lease rates. "We believe could all play a role in extending this move higher." Gold for April delivery climbed to a high at $271.80 an ounce, its highest level since Jan. 8. and was last at $269.80, up $3.70. May silver climbed 3 cents to $4.54 an ounce. Over on the supply end, Comex inventories of gold were unchanged at 1,632,873 ounces late Thursday. Silver inventories also stood flat at 98,972,748 ounces. -END- Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
