London Gold Market Report

THE PRICE OF PHYSICAL GOLD jumped in US Dollars for the third session running
early Monday in London, recording the best AM Gold
Fix since Feb. 24th at $987 per ounce.

Stock markets also leapt worldwide - up more than 3.0% in Frankfurt - while
commodities added to last month's 34-year record gains.

The US Dollar fell against all other currencies. Long-dated government bonds
also fell, pushing interest rates higher.

"We believe in a Strong
Dollar," said US Treasury secretary Tim Geithner to students at Peking
University this weekend, "and we're going to make sure that we repair and
reform the financial system so that we sustain confidence."

Geithner's speech was greeted with laughter according to the London Times.

"Chinese assets [held in Dollars] are very safe," he went on. "We're committed
to bringing our fiscal deficits downup weeks for gold."

But it will be "interesting" to watch for "bouts of liquidation" in Gold
Investment as the price approaches $1,000 says another London dealer.

"It is worth noting that speculators on Comex are now very long," says UBS
analyst John Reade, quoted by Dow Jones, "and with no sign of strong inflows
into the ETFs, the
Dollar must weaken further for gold to make more ground."

Jumping 11% to the greatest level since July '08, the "net long" position
in Gold Futures held
by hedge funds and other large speculative players rose for the fifth week
running in the week-to-last Tuesday.

Speculative gold buying on the futures market, however, remains one-seventh
below the record peak hit in January last year, according to data from US regulator
the CFTC.

"It's the highest quality asset of all. It's about permanence of