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

To: John Paquet who wrote (59503)	10/7/2000 5:57:21 PM
From: John Paquet	Read Replies (1) \| Respond to of 116762

Further observations on gold and XAU and currencies other than us dollar and us dollar. Despite gold bearish and XAU hit a run of new lows, it appears that both hit their bottom, as recent gold follows that us dollar or other currencies. Price actions suggest us dollar bullish is ending, all other currencies bottoming out also especially that Aussie dollar, and Canadian Dollar, Japan Yen looks the strongest among these group, Swiss franc comes second, British pound comes third. Recent economy news prompted us dollar to edge higher a notch, but there is no such new news that would evalute this event for sometimes to come, this thus, at least will turn the market direction for the time being. ECB indeed raised rates, it booted that Euro dollar for an hour or two, currency traders moved in and profit taking. We are also near that edge of 11 nations's conserted intevention level again. Despite many speculating that intervention will not work in the long run, but this dose of intervention certainly would help for the short run, at least, stop that currency traders at abay and under control momentarily, otherwise, we shall see Euro dollar to that 50.00 level and us dollar to that 125, and gold $250, and XAU to that 39. This scenario will never occur. Both fundamentally economic background, and technical are in favor for gold to go higher from here. Last 5-7 day trading was deemed rediculous, for example, us dollar did not go new hi, neither gold hit new lows, but XAU got hit few days in a row new lows. It is rather unreal and irrational so to speak. Maybe that on going slaughter of equity Dow and Nasdaq have some impacts on gold stocks, that is why XAU performed so poorly. Technically speaking, xau that 45-46 will gain support as xau broken that 50 from recent hi of 55, the measurement object is near that 45. It is safe to say that starting Monday that xau will make a reversal turn first it will naturally test that 50 again, and very soon. Both Dow and Nasdaq clearly broken that important support and heading south, it is very likely that both have to re-test that March low, namely, Dow 9775, and Nasdaq 3,000. For Nasdaq only a bit 300 more points, it looks very easy to reach. Further, both technical and fundamental, Dow and Nasdaq have been in the bear market. Some .com stock it was $50 in March 2000, Friday $5.00. Intel, MSFT, WCOM, many many more hit 52 weeks' low. Both long term and short term rates have to head in the higher level as we are indeed entering big INFLATION cycle. Only time will tell in the long run. We shall watch the ticker closely and wait patiently. John Paquet