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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: philv who wrote (4272)1/2/2004 7:38:33 AM
From: russwinter  Read Replies (1) of 110194
 
<Thread question: If the Fed raises rates, what effect would that have on the POG? >

I don't think token rate increases will have much effect on either the USD or gold, although the prospect of the initial increase may cause a brief correction. As long as rates stay in this sub 2% area, speculators, the Chinese, etc, will continue to hoard commodities and inventories.
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However, if the increases get "surprisingly" aggressive (my scenario) gold will be impacted, and the USD could get some support.
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