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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (6138)	5/20/2002 1:33:29 PM
From: John Pitera	Respond to of 33421

Gold looks pretty good technically. There is some resistance around 312 and 320. Precious Metals mining is a very "long-cycle" business. Jimmy Rodgers in his 1988 market Wizards Interview stated Gold would stay in a significant oversupply situation at least until 1995, due to the huge expansion of production in the 1970's and the early 1980's. It usually takes the Gold Supply and Production side quite a while to catch up with changes in Investor Demand for the Metal. Gold has been rallying during the seasonally weak April-May period. Gold's seasonally strong period the past 25 years has been the 2nd week of August to the Second week of Oct. Fundamentally this is thought to be caused by jewelry maker's Holiday Demand purchases. John