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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (14853)	6/28/2002 11:37:29 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 36161

George, dollar weakness is not relaying into gold strength in seven days the dollar has gone from 111 to now 106 yet gold is stuck in a (317-323) range I realize this is gold's low season maybe Slider is right about a dollar/stock bounce here but look at it from a European perspective they now are seeing strong appreciation in local currencies and no change in euro/yen ratios so their exporting potential is now being hurt on pricing while US goods are coming down in price their pricing power is eroding fast across certain sectors mainly technology and software, our principal strengths no change regarding consumer electronics since from asia this is the disinflation we saw for a full decade they are getting a taste of it fast with such disinflation, if not deflation, they are losing their motivation for gold from an economic standpoint they still have it from currency instability I suspect a huge coiled spring is being prepared for gold but for the next few weeks, during gold low season, we have vulnerability with gold miners providing support as they continue unwinding hedges this Xerox news is small potatoes 2% difference in earnings adjustments but the psychological effect is much more damaging the parade of corruption and deceit continues / jim