Dutch Central Bank Sale Announcement Imminent? Message Board

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Politics : Dutch Central Bank Sale Announcement Imminent?

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To: Jim McMannis who wrote (5165)	4/8/1999 3:57:00 PM
From: Zardoz	Read Replies (1) of 81177

"They dropped rates in Europe. This izzzz guud, not bad however. For Stocks and gold." Nope, bad for GOLD. Always has been, always will be. And since it's Foreign rates that got cut, it's only good for the DOW for a short time. Once the rally in US bonds and equities subsides {due to UK cut}, the pressure goes back onto the USA bonds, and the currency exchanges. Money always seeks a highest 'REAL' return possible. Within UK, the price of GOLD may well rise {in pounds} but not in Dollars. GOLD does best in deflation, not inflation. Often inflation causes a deflationary bubble. The despairity between bonds yields and inflation rates is what causes the price of Gold to rise. Seldom; if ever; when the yields on bonds are higher then inflation rates and growth rate, does the price of gold climb. The XAU has been leading this trend down. Since the XAU is interest rate sensitive, Dollar sensitive via Price of Gold sensitive. pretty sensitive in all. Think Gure Byron lows for gold are coming feasible. Seems everyone expected a 0.50% cut. {interesting article Darleen} maybe further cuts a coming?

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