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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Snowshoe who wrote (19628)	6/10/2002 4:35:59 PM
From: Snowshoe	Read Replies (2) \| Respond to of 74559

Briefing.com on gold... 13:00 ET ****** Gold Losing Glitter : Is the gold rally finally over? That's the question investors are asking themselves this morning, as gold slips another $3.30 per ounce to $321.10... Fact that the decline comes amid news that the government arrested a U.S. citizen, with an alleged al-Qaeda connection, for plotting to build and detonate a radioactive dirty bomb in Washington DC, is particularly interesting in that gold would normally get a boost under such circumstances... Also troubling is the fact that today's big slide comes on the heels of last Wednesday's alarming drop of 2%, or $6.70 per ounce... Though Briefing.com sees no major change to the fundamental forces underpinning gold and gold shares (global tensions, reduced hedging, weakening dollar, anxiety over corporate financing, soft stock market), it's tough to label such a steep and quick decline as mere profit-taking... However, if the decline is indeed nothing more than a corrective pullback, then gold and gold stocks should begin the recovery process in short-order... During the Jan-Jun rally, the Philadelphia Gold and Silver Index (XAU 77.37 -1.38) has found strong support at its 50-day moving average... The index is testing that floor today (see chart)... Many gold stocks are also testing their respective 50-day moving averages... Should note that in a potentially ominous sign, Newmont Mining (NEM 28.70 unch) and Gold Fields (GFI 11.80 -0.73) blew through their 50-day moving averages on Friday, and extended the break this morning... As for the base metal itself, significant support can be found in the $320-$319 and $316-$315 areas... Failure to hold at these levels would suggest that something more serious is at stake, and that gold and gold shares could continue to lose their luster. - Robert Walberg, Briefing.com