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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: scotty who wrote (38500)	8/6/1999 11:18:00 PM
From: Rarebird	Read Replies (1) \| Respond to of 116767

< If the broader market tanks near term do you think the miners will hold up? > That's the billion dollar question, of course. I see at least 5 factors here, 3 of which are very positive for the XAU, 1 factor extremely negative and the other factor still negative. Factors: 1) US Dollar Index ( very positive) 2) Inflation Data ( becoming very positive) 3) US Bond Market Yields and Credit Risk ( positive) 4) Potential Fed tightening ( extremely negative). Don't underestimate what severe Fed tightening can do to the XAU. The XAU knows it and is scared sh*tless. 5) Confidence in the System. ( negative ). This will get shattered as the Bear Market deepens. Factors 1,2,&3 have moved the XAU from 58 to 67 over the last 2 weeks. But todays data caused the XAU to retreat based on its greatest fear ( factor 4 ). If the US stock market falls enough for the Fed not to tighten ( and stays in a bearish trend ), the XAU will not be held hostage and should Soar.