Gold price falls

Press, 27 November 1980, Page 24

Gold price falls

Gold closed at $616.50 an Gold c’osed a 061655 t ounce, $l5 below ' the previous close but above the lows for the day, dealers said. The price fell during early trading in a market depressed by the sudden drop in prices in New York the previous evening. But solid support reap-! peared as the price dipped | below $6lO. and the recove-! ry*was aided by news that! United States consumer! prices remained unchanged last month, the dealers added. The consumer price figures were seen as indicating that inflation continues unabated in the ' United States, the dealers said. . . i The high level of United, States interest rates contin-! ues to exert a bearish in-( fluence. Dealers noted that United I States , markets opened

ii firmer and said that European markets are unsettled > ny sudden .swines in the: i United States which occur > for no apparent reason. i In London the Bank of, • England gave large assis-i ■ tance to the market by way' lof purchases of treasury, J ! local authority, and bank! ■ bills. | The market was faced * with the repayment of Tuesday's large lending to six or •I seven houses, and the uniwinding of a large sale and repurchase of commercial 1 bills agreement, though 1 these were partly offset by Government disbursements 1 and the redemption of the 1 'exchequer 13 per cent 1980 1 (stock, dealers said.- . < ’ j Secured money closed higher at 13} to 14 per cent j though some dealers said ( I that closing balances were , taken as low as 12 per cent.