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Gold Surges to 9-Month High on News of Mining Stake Sale

April 27, 1993|From Associated Press

Gold prices surged nearly 2% to a nine-month high Monday on signs of improving investment demand for bullion and gold stocks.

Gold for current delivery jumped $6.30 to settle at $352.80 an ounce on the New York Commodity Exchange, after having soared $6.50 an ounce Friday. Silver rose 11 cents to $4.065 an ounce.

Gold's price has risen more than 8% since bottoming out at about $326 an ounce March 10.

In recent weeks, renewed fears of inflation have helped to restore gold's reputation as a hedge against cost-of-living increases, which can erode the value of many investments. And stocks of gold mining companies have soared as much as 30% since the beginning of the year.

Analysts said the buying was triggered in part by news that companies controlled by Sir James Goldsmith, the billionaire Anglo-French financier, had sold a 10% stake in Newmont Mining Co., North America's largest gold mining concern, and that Goldsmith had spent more than $300 million of the proceeds on options to buy goldbullion.

The Newmont stake was purchased by several funds managed by George Soros, a famed high-stakes trader.

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