Negative sentiment toward gold

Press, 13 April 1989, Page 24

Negative sentiment toward gold

NZPA-Reuter New York The negative investor sentiment toward gold is being compounded this year by rising gold supplies and an expected decline in central bank purchases, the investment firm Goldman Sachs says. Central bank buying supported gold prices last year in the absence of strong investment demand but the same level of support is not likely in 1989, it says. The house predicts that total gold supply this year will rise 5.5 per cent to a record 67.5 million ounces, from the 1988 level of 64

million ounces. Much of the increase will come from a projected 15 per cent jump in non-South African production. Mine output in South Africa also may rise slightly, Goldman Sachs says. Weak industrial and investor demand will keep downward pressure on silver, predicting a price range this year of .$U55.25 to SUS7.SO an ounce. Goldman Sachs said platinum has been influenced by a long-term surplus and short-term supply disruptions, which could lock prices this year in a trading area of SUS4SO to SUS62S.