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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: AH who wrote (4661)	7/28/2002 5:13:09 PM
From: Kaena™	Read Replies (1) \| Respond to of 39344

Hopefully we've finished retracing in the gold stocks or will be in the next few days. I'm concerned about the July 26 COT report showing small specs still over 40,000 contracts. I was hoping this number would have been substantially reduced. Maybe gold will have to move a little lower to shake out these longs before the next leg up can begin. The only thing that would change my mind about gold over the longer term would be if the dollar were to continue to new highs. I expect no more than a month or two rally if at all before a continuation of its downtrend. I just can't see foreigners coming back in to fill the 30-40 Billion monthly deficit especially with rates so low, corporate scandals, poor earnings and the shaky outlook of the stock market. A continuation of the dollar downtrend will continue to fuel the price increases in commodities and cause long term rates to rise. The widening spread between short and long rates will support the next leg up in gold and gold stocks. Good luck to all.