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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1788)	5/14/2001 8:42:45 AM
From: Jack of All Trades	Read Replies (1) \| Respond to of 12410

<Charts suggest that Gold could see $350.00.> What time frame do you think this will happen or must happen by? I am still holding some gold stocks, did you bite, or is gold still forbiden fruit for you? Jeff

To: Chip McVickar who wrote (1788)	5/14/2001 9:00:56 PM
From: Moominoid	Respond to of 12410

Charts suggest that Gold could see $350.00. $350 would be wonderful because that corresponds to $US 70 cents to AUD 1.00. But like you I don't see the fundamentals for that rise in the gold price. The AUD is very undervalued. Ona purchasing power parity basis it should be at least 70 US cents. The "Big Mac" index I think would point even higher, so either there had to be a lot of inflation in Australia (surprisingly little yet given the depreciation we just had) or the exchange has to rise. Don't know why that would drag up gold if it happened, but the AUD-Gold relationship seems to still to hold more or less. As far as sectors are concerned the Colonial First State Global Resources Fund (global resource stocks) is the best performing of the mutual funds I'm invested in. David