LITTLE REACTION TO REMOVAL COMEX DAILY LIMITS The elimination of limits on daily price fluctuations for metals futures contracts traded on the Commodity Exchange, COMEX, 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 said. On May 5, COMEX eliminated price limits on the two contracts following each spot delivery in gold, silver, copper and aluminum futures after a review of its clearing operations, which were severely tested by a volatile market in silver futures at the end of April. COMEX announced Friday the lifting of all daily limits, effective today. Gold futures, which previously had a limit of 25 dlrs per ounce in most back months, were about 7.00 dlrs weaker in the nearby contracts amid thin volume conditions, traders said. Silver futures, previously limited at 50 cents in most back months, were trading about 30-40 cts weaker in the nearby contracts amid quiet trading today. During the last week of April, silver futures often traded at the daily allowable limit amid concerns about inflation, the dollar, and other factors. Traders rushed into the spot, or unlimited, contract to offset those moves, analysts said. As a result, O'Neill said, there was much confusion, many unmatched trades, and large losses for some traders. The COMEX fined four large firms a total of 100,000 dlrs for failure to resolve unmatched trades in a timely manner. 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. O'Neill added that the elimination of daily limits would add caution to trading. "This is a more realistic approach because the metals market is a 24 hours market and prices can move without limit," O'Neill said.