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

To: Bob Dobbs who wrote (57999)	9/8/2000 7:15:30 PM
From: goldsheet	Respond to of 116753

I did not want you to think that I was remiss in my duties in pointing out the importance of the US dollar index. The oldest reference I can find in my records is from May 5, 1997 when gold was near $350 and the XAU near 100. "With a strong US dollar, it is imposssible for gold to rally (or even stay flat). As the US dollar Index move rapidly from the 86 level in November 1996 to its recent high at 97.28 on April 28th, gold bullion moved from $ 382 to a low of $ud 339.9, also on April 28th. It is interesting to note that a 13% rally in the US dollar combined with the 11% drop in gold, makes gold bullion appear to have gone sideways in 1997 when denominated in Mark or Yen. Take a look at the excellent charts on the Privateer (http://www.the-privateer.com) Another positive factor is the price action of Platinum and Palladium, which historically often begin to rise before gold bullion. Spot gold and spot platinum both strarted 1997 at about $US 365, no spread ! The spread was about $ 30 last week, and after today's nice $8 gain in platinum, it now is near $ 40. Very interesting ! I'm not predicting a gold rally, but weakness in the US dollar is definitely required before we can have one." Since the dollar continued to rally, one should have stayed out and have missed the subsequent 20%+ drop in gold and almost a 50% drop in the XAU.