who is trapped holding gold shares, page-28

1013 [Dow Jones] Correction in base, precious metals is warning sign with market looking to take profits in finely-priced, very high markets, says ANZ commodity strategist Mark Pervan; USD rise gives some hope U.S. financial troubles starting to bottom, could signal things are close to cycle top for commodities, would signal speculative, hot money to turn away, remove speculative froth. Record prices of particularly oil, base metals not fundamentally justified; equities looking cheap at present, says Pervan. Oil most vulnerable to further pullback on U.S. recession though base metals to hold up better on China story and as impact from U.S. slowdown to filter through slowly. LME 3-month copper at $7,930/ton, down $49 vs PM kerb, gold at $941.40/oz, down $1.50.(EFB)


1015 [Dow Jones] Spot gold steady after huge overnight drop; market was due for correction after the "tremendous" amount of speculative fund money moving into commodities complex since Fed started rate cutting campaign in September, says Kitco analyst Jon Nadler. Commodities, including gold, needed large Fed rate cut Tuesday to sustain buying frenzy of dollar alternatives. Gold market psychology could be due for a realignment, even though a $100 drop from record highs within the week "is small damage". But speculative money driving gold's most recent rally very fickle, may be allocated elsewhere now. Gold fall could unlock some of Indian physical gold demand, on hold due to high prices. Spot gold at $942.90/oz, unchanged on NY close. (EFB)