Gold Price Up Again

Press, Volume CVIII, Issue 31653, 13 April 1968, Page 13

Gold Price Up Again

(N.Z.P A.-Reuter—Copyright)

LONDON, April 11. Growing demand for gold pushed prices higher in the world’s leading bullion markets yesterday. The metal was traded in London yesterday morning at 5U538.05 an ounce, its highest price since the London bullion

market reopened nearly two weeks ago. This was an increase of 35c over Wednesday afternoon and a rise of more than SI since Friday. Similar price increases were reported from Paris and Zurich. Although the price slipped back fractionally in the afternoon to SUS3B, the same as on April 1, dealers described the turnover as fairly high. The demand did not compare with last month’s goldbuying stampede, but there were signs of speculation by people reluctant to hold paper currencies over the long Easter week-end.

The demand has been increasing since Monday, when South Africa, the world’s biggest gold producer, announced that it would not supply metal to the markets for the time being. Dealers said the South African decision could discourage private holders from selling their stocks. “If South Africa finds the market prices too low, that’s good enough for the speculators,” one dealer said. Since supplies from central banks were stopped in midMarch, the demand has been met principally by small-time speculators, who could not afford to sit back and wait for the gold price to rise. “The Economist,” the news and business weekly, today published a photograph of the Bahnhofstrasse in Zurich, with the caption: “The world’s new gold centre.”

It said: “The big international trading is now done in Zurich, where the turnover this month has averaged about 15 tons a day, or about three times London's volume.” A top London dealer was sceptical about the report. He said Zurich had been carrying on “a wonderful advertising campaign” and claimed that the London market had regained most of its old customers since its enforced twoweek closure last month. But the signs in London are that the market’s turnover has not been more than about five tons a day during the last two weeks.

This compares with more than 100 tons on some of the big days of the recent gold rush.

Share prices soared to new peaks on London’s stock exchange today in an atmosphere of mounting excitement about the prospects for peace in Vietnam. The “Financial Times” Industrial ordinary share index jumped to 447.9 points near the close, 4.2 points higher than yesterday’s record.