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

To: PAUL ROBERTSON who wrote (88293)	7/24/2002 12:25:26 PM
From: kirby49	Respond to of 116764

Humming at top speed. Hope he doesn't burn out any bearings. biz.yahoo.com

To: PAUL ROBERTSON who wrote (88293)	7/24/2002 12:27:28 PM
From: Real Man	Read Replies (1) \| Respond to of 116764

It seems quite obvious right now that part of the Fed forex reserves (gold only!) was sold or swapped to support the falling buck, maybe a significant part. All the gold at the Fed is worth around 90 billion, if that much, and if all that gold belongs to the Fed. That's less than 3 months of trade deficit. If there is significant foreign outflow and the Fed throws this gold into the market, gold price will move sharply down, and 90 billion will be reduced. My guess is they will likely swap the gold for Euro with some European CB, or for yen with the Japanese CB. Either way, if there is a dollar panic, the outflow from the dollar is likely to top 10-20 billion a day, so the Federal reserve gold is going to last 5-10 days or so. Pretty much the Fed is helpless against the buck decline, so they will have to push some other strings. I think gold rally depends how fast the Fed will print to replace dollars that are evaporating from the bankrupt corporate bonds. I guess Wcome has made a huge hit to m3. The dollar trendline held so far. Looks like a parabolic move down.