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Strategies & Market Trends : Precious Metals mutual funds (gold, silver, PGMs) -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (406)	10/17/1999 1:01:00 PM
From: Dan P	Read Replies (1) \| Respond to of 972

Larry: Thanks for the info. It is of interest that gold and gold stocks held up fairly well during the debacle of the past several days in the US market. There are many factors at play, including a steadily weakening US dollar, now well below support levels at 97.09. down from the high reached this past June at 105. This is already a 9% decline, and looks to be headed lower, having violated support levels, including the venerable 200 day MA. This is certainly lending support to gold and commodities in general, since many are priced in US dollars, anyway. It will be a very tough battle, indeed, as foreigners seeing our T-bonds dropping in price, the stock market in decline, may want to sell US dollars in exchange for Euros, Yen, or gold. I am convinced this is already happening, and it may take much higher interest rates to re-attract foreign money. Since this is supposed to be a mutual fund (gold) thread, I took a look at the gold fund average at Gold-eagle, and of course, not only have the gold funds risen above their 200 day MA convincingly, but the average looks to be turning to the upside. We are getting a correction in the metals and gold funds, now, and if you are convinced, as I am, that we are now in a new gold bull market, buying the dips would make sense. Marantette views the current gold rally with suspicion, and expects gold and gold stocks to correct back considerably. I can see the XAU going down to test the 72 level, maybe just intraday and that would fill one important "gap" that resulted from the recent breakout. I find it hard to believe that gold will be back down to 262 or so to "fill" those gaps that Marantette talks about. We'll see. Regards and cautiously bullish. Dan