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Gold/Mining/Energy : Barrick Gold (ABX)

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To: Enigma who wrote (3125)	6/6/2002 5:48:11 PM
From: nickel61	Read Replies (1) of 3558

Sinclair Gold Market losses $10 from high to low In 36 hours of trading By James Sinclair & HD Schultz Gold came down from an interday world high just below $330 to a world interday low just above $320 within 36 hours of trading. The gold market appears to have been prepared for this experience by the multitude of bearish reports concerning overbought technicals from interational investment banking houses. As an example Goldman Sachs downgraded major producers saying this week that they had meet their price objectives. However the source of this sell off was not the so-called Gold Cartel personalities. $330 was a perfect place for gold to have peaked temporarily as it represented highs and lows of trading (resistance areas) formed in 1998, 1999 and 2000. Selling last night and today came from an unnamed international bullion pool, not a fund and was determined in its activity seemingly without regard for price. Selling such as that usually has as its intention the establishments of a price more than volume focused liquidation. Gold will declare itself in terms of if or not it is the beginning stages of a long-term major bull market NOW. We shall see if Dr. No and Hung Fat are for real. We will know if the derivative squeeze is really at hand. That will be demonstrated by gold's action over the next few days and possibly weeks. Gold can decline to a maximum of $303 but should find support of significance at $317.36 which has the ability to reverse this downdraft. The high trade of gold was at $329.94 or 61.8% Fibinocci number. That sounds to us as if the downdraft was caused not by the Cartel but rather by Dr. No and Hung Fat themselves to slow down the gold move in order to ease the tensions now building within the central bank community over gold's rapid ascent. There is a good deal of talk in central banks circles that the goal of Zero Inflation must be muffled. The fear is that Zero Inflation goal of the 1980s is now be equated to a Japanese type of Deflationary experience that is not good for the NASDAQ or S&P indexes. They both looked yesterday like death rolled over. If the major indexes were to collapse here and now the incipient economic recovery (not profits recovery) might come to a screeching halt and reverse into a Japanese type economic disease. Dr. No and Hung Fat know that if gold's rise does not get extreme now, it is tolerable and will not bring in central bank opposition. In conclusion: the primary Asian Bulls sold off this gold market, not the usual suspects, the gold cartel brokers Morgan and Goldman. The Major Bulls are shaking the tree. If the gold market holds by not falling below the Fibinocci 50% 317.36 then the full bull is on right now and right here. Assuming that the $303- $305 which is the Fibinocci 38.2% level holds, the gold bull market is still on but with ease and determination, not excitement and fury. contact HD Schultz www.hsletter.com JE Sinclair CEO & Chairman TNX www.tanrange.com

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