LITTLE REACTION TO COMEX PRICE LIMIT REMOVAL
  The elimination of price limits on
  precious metals contracts trading at the Commodity Exchange in
  New York appears to be having little effect on the market,
  analysts said.
      "There is nothing apparent from the change," said William
  O'Neill, director of futures research at Elders Futures Inc.
  "The market has not approached the old price limits and trading
  is relative quiet, in narrow ranges," he added.
      Gold futures, which previously had a limit of 25 dlrs on
  market moves in most back months, were about 7.00 dlrs weaker
  in the nearby contracts amid thin conditions, traders said.
      On May 5, COMEX did away with price limits on the two
  contracts following spot after a volatile market in silver
  futures at the end of April caused severe disruptions.
      During the last week of April, silver futures traded up and
  down the price limit in the back months, causing traders to
  rush into the spot contract to offset those moves, analysts
  said.  As a result, Elders' O'Neill said, there was much
  confusion, many unmatched trades, and large losses.
      The COMEX fined Elders Futures and three other large firms
  a total of 100,000 dlrs for failure to resolve unmatched trades
  in a timely manner.
      Silver futures were trading about 30-40 cts weaker in the
  nearby contracts amid quiet trading today.
      O'Neill said the elimination of price limits on all COMEX
  metals futures would add caution to trading since all contracts
  could move any distance.
      "This is amore realistic approach because the metals market
  is a 24 hours market and prices can move without limit,"
  O'Neill said.
      Paul Cain, a vice president at Shearson Lehman Brothers,
  said the elimination of price limits will cut back on panic
  buying or selling  and contribute to more orderly markets.
  

