/ 13 May 1997

Gold breaks its shackles

TUESDAY, 8.30AM

GOLD climbed out of its three week trough in overnight trade, thanks to the weaker dollar, the gains by silver, platiunum and palladium — and the discovery that a rich new Indonesian gold seam was a hoax.

The JSE all gold index was up 2,5% or 30 points to 1 268; and gold closed at $345,50 in London and $347,55 in New York. The dollar’s decline follows an announcement by the Japanese that they may sell dollars to defend the yen. Silver, platiunum and palladium are up due to a shortage in supplies from Russia.