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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: loantech who wrote (20719)	9/11/2006 1:41:58 PM
From: John McCarthy	Read Replies (2) of 78419

re:US Dollar from a guy at the FED .... >>>>>>>>>>>>>>>>>>>>> Also weighing on gold was renewed strength in the dollar, which was recently trading at 117.54 yen vs. 116.90 late Friday. The euro was recently at $1.2699 vs. $1.2671. Gold often moves inversely to the dollar, which was being buoyed by more hawkish comments from Federal Reserve officials. Speaking to the National Association for Business Economics Monday, St. Louis Fed President William Poole reiterated his support for the Fed to formally adopt an inflation target. "I do not believe that uncertainty about the Fed's inflation objective is a large issue at present, but do believe that there is an opportunity to improve clarity," Poole said. The adoption of an inflation target likely would mean more rate hikes because inflation is currently running above the Fed's perceived comfort zone. "To maintain credibility the monetary authority must deliver what they said they would deliver," Pool said. "Credibility is essential to the stability of longer-term inflation expectations." >>>>>>>>>>>>>>>>>>>>> thestreet.com thestreet.com Another guys view of Gold/Silver/the Dollar Metals Metals really took it on the chin this past week. Silver had the biggest sell off of the group but gold too fell down hard. Silver remains in an overall uptrend, while gold on the other, hand continues to consolidate or drift with its range. We remain bullish silver unless we close below 12.00 next week. If that happens then we open the door to a bear market in silver. Gold too needs to hang onto support at 600 if we have any hope of seeing 650 before this quarter is out. The main reason for the sell off is the strength in the US dollar and that strength is based on the idea that inflation is heating up. So that begs the question, how can inflation be rearing its head and at the same time the number one hedge against inflation sells off? I would ague that this sell off is simply an shakeout. This sell off however, gives traders a great low risk entry point on the long side with stop and reverse orders just below critical support levels that I mentioned above. insidefutures.com At the end of the day I am still confused by the dollar because if you raise rates (in my opinion) we are ALREADY about to go into a recession due to housing and an interest rate hike (or two) would really kill us off ...... but the Fed does not seemed concerned about this ... regards, John

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