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

To: Rarebird who wrote (55951)	7/9/2000 11:59:31 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116815

IMHO the danger in the Gold market lies in the perception that a soft landing is imminent. Woe to gold if a soft landing comes about. I think a soft landing is slim and the economic cycle has not been repealed. The dollar will write the script for Gold. Well, we can finally agree Rarebird. However, the prevailing belief I perceive is that maybe the Fed has overdone the rate hikes. In that case, would you be inclined to say "woe to gold"? I do think we'll see a "soft landing" if he doesn't raise rates higher. But if the Fed throws the US into negative growth (recession) then we could see a weakening of many global currencies (since the value of Fiat money is based upon economic policies/growth). However, I would still suspect that overall, unless the dollar plunged, and I mean plunged in a 20% decline, I think bonds will outperform gold. And I think gold may initially show some strength that will quickly be sold into. Again, gold will prosper when economic policies are perceived to be overly extreme, either with regard to inflation or deflation. Extreme policy changes are what impact the confidence in the (any) financial system. Regards, Ron