London (Platts)--27Jun2007

Gold has continued its decline into the European morning, being bid at
$640.80/oz spot as of 0752 GMT Wednesday, compared to the spot price at a
similar time the day before -- $648.50/oz at 0803 GMT Tuesday.
     Standard Bank in its daily precious metals report noted that sharp falls
in precious metals throughout Tuesday could be attributed to "waves of long
liquidation," impacting gold and silver, with fresh selling interest emerging
during the European day, and then "massive waves of long liquidation in the
New York session", which the bank said had initially been led by the collapse
in silver and subsequently a firmer US dollar and weaker energy prices. These,
said Standard Bank, "forced gold to break key technical levels as it fell
lower."
     It saw resting stop-loss selling orders add further to the downward
pressure, and saw the shakeout finish, and "order restored" with a low of
$640.75/oz offered. Gold finished Tuesday in New York at $642.70 bid, said the
bank.