vt - fwiw, Coxe reiterated his call on gold this week:
"The US is, still, one of the three great exporting nations. So if the Dollar breaks through its 79 support level on the DX, as we believe it will, then the currencies that are going to be affected most strongly by this are the Euro and the Yen. The Yen has been remaining depressed because of the carry trade. And as we look at it this morning, it’s 120.1, but as you know, those of you who have been following the calls, we are still of the view that that 122 line was a line drawn in the sand back in October 1998 at the time The Great Symbiosis was set up, and so, the Yen isn’t going to break that line, unless the world has truly changed.
So therefore the one currency whose weakness has been saving the Dollar as it’s been falling to lows against other currencies, will no longer be, in effect, on balance, a support to it. So at some stage I think we’re going to break that…and when we do, we’re going to break through $700 on gold. And this time it’ll be to stay." |
