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Will Barrick curtail hedging on Monday?

Section: Daily Dispatches

Noon EST Friday, February 4, 2000

Dear Friend of GATA and Gold:

Here's a bulletin from GATA Chairman Bill quot;Midasquot;
Murphy to his subscribers at

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

11:30a EST Friday, February 4, 2000

By Bill quot;Midasquot; Murphy

The pulse of the gold market has really picked up.
April Comex gold last traded at $298.80, up sharply
on the day so far.

As I mentioned in last night's quot;Midas,quot; there were
massive stops $2 to $3 above yesterday's gold close.
Two well-known funds alone were short at least 7,000

No more. They were taken out this morning.

Sources close to the Cafe now tell us there are
additional massive stops building right above $300
basis the April contract. We also understand that
Goldman Sachs is waiting for these stops to be
touched off and plans to sell into the buy stops.

Speaking of Goldman Sachs.... Rumors continue to
circulate that they, Deutsche Bank, and Merrill
Lynch are the ones with the trading problems due to
the steepening yield curve.

Goldman Sachs' share price was down almost 6 points
yesterday in an up stock market, and is down another
1 3/8 today.

The economic news this morning showed that the U.S
economy is still booming with wage pressures
creeping into the picture.

The bond market has turned negative again. Frank
Veneroso noted this morning that all the Treasury
has to do to fix the inverted yield curve problem
and the bond dealer bad trade problem is to announce
that it will buy back shorter-dated notes as well as
the 30-year Treasury bond.

But Icarus notes that this would require Treasury
Secretary Lawrence Summers to eat crow. For the spin
this morning by the establishment was that President
Clinton had told the dealers that this was coming
when he announced that U.S. debt was to be reducted.

Which will have precedence here -- the ying or the

Is it not interesting that the gold market surges
when the bullion dealers who have been manipulating
the gold market run into market problems?


How obvious can this manipulation get? The question
now is: Will they lose control of the market again
as they did last September?

It is inevitable that they will. Now or later and
the price of gold will shoot up toward its natural
suuply/demand equilibrium price of $600 per ounce.

The oil market has reversed to the upside just now
and is trading in contract high close ground.

Stay tuned!