Further plunge by gold price

Press, 15 January 1982, Page 10

Further plunge by gold price

PANew York Gold prices plunged to a 26-month low yesterday, dropping below $3BO a troy ounce in Europe and the United States, after reports that Swiss dealers received a “very large” order to sell gold from the Middle East. The U.S. dollar turned in a mixed performance, falling against most major currencies in early overseas trading. but surging at the end of the trading day in New York. Gold fell to its lowest level since November 2, 1979, in European and U.S. bullion markets, slipping to $377.80 a troy ounce in contracts for current delivery on the New York commodity exchange. $10.20 less than on Tuesday. In later New York trading, bullion was bid at $378 an ounce at Republic National Bank, down from Tuesday’s $388.50.

Calm bullion trading in Europe was disrupted at mid-day, according to a Zurich dealer who said, “a very large liquidation order came in during lunch from the Middle East. It came from influential investors, the big guys. This made the market nervous and touched off the selling." Zurich dealers said that some unidentified state banks, apparently the West German and Swiss, were buying gold to steady the price and protect the “value of their holdings. A New York gold trader also cited the European selling for gold's decline, saying there were few buyers in the nervous market. Bullion has been faltering for months, hit by a strong dollar, high interest rates, and a slowing of inflation.