Vizh, you put too much emphasis on dollar-gold relationship
gold just began a breakout
now contract fundamentals work in favor of gold
JPMorgan, Citibank, GoldSachs all have big naked shorts
Barrick, Placer, AngloGold still are unwinding forward sales contracts
they just saw their derivative desks given red light warning
BEWARE, YOUR COMPANIES ARE AT RISK OF DEATH
I believe it is critically important to realize that GOLD has many reasons influencing it
the dollar is a big factor
but dont be too locked on it
evidence that bullion bankers and hedged miners are pushing the gold price up now cannot be more clear than noting that gold has been rising consistently now in NYCity
that is why I report its intraday movement in USA
I believe gold will slowly float up to 330-335
and rest there
no, the big pullbacks will be seen with XAU only
we have been hoping the Gold Cartel would lose control
it loses control finally, and you expect the result to be a pullback ????
I dont think so
instead, now is time for the accelerated short covering
by the way, as consensus opinion reinforces no Fed rate hikes until late this year, we see a hardening of another very strong influence on gold price
this is confirmed in futures markets
the Dec02 FedFunds reflects this expectation
the real rate of interest is now near zero
and it will continue near zero for another six months
that means it will remain near zero from Oct01 to End02
dont lose sight of that
this is the signal to the large bond holder community
and Bond Market is 5x larger than stock market
they are staring at zero real returns on bond investments
they dont hold pat in such an environment
historically, they moved in large numbers into gold
keeping gold down will soon become like dealing with a hydra
as one head is removed (or ducks down), the other 19 heads remain in force driving up gold
/ jim |
