At a bottom now for gold? Message Board

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Gold/Mining/Energy : At a bottom now for gold?

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To: Alan Whirlwind who wrote (1333)	6/30/1998 2:03:00 PM
From: ahhaha	Read Replies (1) of 1911

Yes. It's starting with plenty of doubt. No one is noticing but the FED is targeting interest rates. That means when the fed funds rate rises they come in and supply temporary and permanent reserves. The market is never allowed to come into natural equilibrium because the FED thinks they know more about the proper cost of money than the market. The RP free float is supporting a money expansion in excess of productivity leveraged output growth. That puts upward pressure on gold. The gold market couldn't care less whether that is true or not. They're still watching yen/dollar and oil so they can dance to the tune of the past. The world will be surprised when oil is constant at a higher price, the Japanese bank nonsense is no longer operational but the yen falls, and gold rises. When the Japanese panic and start pumping money, not fiat lower short rates, then you'll see the Asian nations joining in on the big move in gold.

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