In a message dated 9/27/99 11:57:30 AM Central Daylight Time, AOL News writes: << Subj: Europe: Dollar Up; Gold Soars Date: 9/27/99 11:57:30 AM Central Daylight Time From: AOL News BCC: Ahab42 Europe: Dollar Up; Gold Soars .c The Associated Press LONDON (AP) - Gold prices soared today following an international agreement to limit sales from government and other official stocks. The U.S. dollar was mostly higher and surged against the Japanese yen in Europe. Gold finished at $279.90 in London, up from $269.00 Friday. At midmorning, London gold dealers fixed a recommended price of $281.70. In Zurich, gold traded at $280.93, up from $268.35. Gold rose $16.95 in Hong Kong to $283.00. Monday's prices were the highest since May 7, when Britain announced it planned to sell 125 metric tons of its gold reserves by the end of next year. Gold rallied after the International Monetary Fund's policy-making Interim Committee, meeting in Washington over the weekend, approved a plan to revalue up to 14 million ounces of its gold reserves in transactions with central banks to partly finance a Third World debt initiative. The IMF had dropped plans to sell gold on the open market under pressure from gold-mining countries and U.S. lawmakers. In a further effort to bolster gold prices, central bank officials from 15 nations pledged Sunday they would hold future gold sales to limits already announced. In the currency markets, the euro was quoted at $1.0440 in late European trading, down from $1.0462 Friday. Later, in midday trading in New York, the euro traded at $1.0446. Other dollar rates in Europe, compared with late Friday, included 106.19 Japanese yen, up from 104.08; 1.5340 Swiss francs, up from 1.5296; 1.4694 Canadian dollars, down from 1.4732. The British pound was quoted at $1.6478, up from $1.6424. In midday trading in New York, the dollar bought 106.14 yen, and the pound was worth $1.6460. The U.S. currency rallied against the yen early on short-covering after a stalled selloff overnight, but the future direction depends on the Bank of Japan's policy, analysts said. Short-covering occurs when traders, who earlier had bet on a decline in the dollar, buy dollars to either take profits on the decline or limit their losses as the dollar rises. Currencies of the 11 countries participating in the euro are no longer traded separately, though they remain in use. Based on euro rates, the dollar is worth 1.8743 German marks, up from 1.8687; 6.2855 French francs, up from 6.2681; 2.1120 Dutch guilders, up from 2.1060; 1,855.55 Italian lire, up from 1,850.59. Silver closed in London at $5.36 bid per troy ounce, up from $5.27. AP-NY-09-27-99 1256EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>. >>
Europe: Dollar Up; Gold Soars .c The Associated Press LONDON (AP) - Gold prices soared today following an international agreement to limit sales from government and other official stocks. The U.S. dollar was mostly higher and surged against the Japanese yen in Europe. Gold finished at $279.90 in London, up from $269.00 Friday. At midmorning, London gold dealers fixed a recommended price of $281.70. In Zurich, gold traded at $280.93, up from $268.35. Gold rose $16.95 in Hong Kong to $283.00. Monday's prices were the highest since May 7, when Britain announced it planned to sell 125 metric tons of its gold reserves by the end of next year. Gold rallied after the International Monetary Fund's policy-making Interim Committee, meeting in Washington over the weekend, approved a plan to revalue up to 14 million ounces of its gold reserves in transactions with central banks to partly finance a Third World debt initiative. The IMF had dropped plans to sell gold on the open market under pressure from gold-mining countries and U.S. lawmakers. In a further effort to bolster gold prices, central bank officials from 15 nations pledged Sunday they would hold future gold sales to limits already announced. In the currency markets, the euro was quoted at $1.0440 in late European trading, down from $1.0462 Friday. Later, in midday trading in New York, the euro traded at $1.0446. Other dollar rates in Europe, compared with late Friday, included 106.19 Japanese yen, up from 104.08; 1.5340 Swiss francs, up from 1.5296; 1.4694 Canadian dollars, down from 1.4732. The British pound was quoted at $1.6478, up from $1.6424. In midday trading in New York, the dollar bought 106.14 yen, and the pound was worth $1.6460. The U.S. currency rallied against the yen early on short-covering after a stalled selloff overnight, but the future direction depends on the Bank of Japan's policy, analysts said. Short-covering occurs when traders, who earlier had bet on a decline in the dollar, buy dollars to either take profits on the decline or limit their losses as the dollar rises. Currencies of the 11 countries participating in the euro are no longer traded separately, though they remain in use. Based on euro rates, the dollar is worth 1.8743 German marks, up from 1.8687; 6.2855 French francs, up from 6.2681; 2.1120 Dutch guilders, up from 2.1060; 1,855.55 Italian lire, up from 1,850.59. Silver closed in London at $5.36 bid per troy ounce, up from $5.27. AP-NY-09-27-99 1256EDT Copyright 1999 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without prior written authority of The Associated Press. Announcement: America Online has added Reuters newswires to News Profiles. To add Reuters articles to your daily news delivery, go to KW: <A HREF="aol://5862:146">News Profiles</A> and click on "Modify Your News Profiles." Then click "Edit" and add Reuters from the list on the left. To edit your profile, go to keyword <A HREF="aol://1722:NewsProfiles">NewsProfiles</A>. For all of today's news, go to keyword <A HREF="aol://1722:News">News</A>.
