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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (18429)	5/28/2003 6:17:33 PM
From: philv	Read Replies (2) \| Respond to of 82314

I strongly disagree with your statement that gold does not have any correlation to the USD, but to the Canadian Dollar. I have been observing all three for long number of years. The Canadian dollar is almost unaffected by the POG, as Canada holds almost no gold in reserve. Besides, gold is priced in US dollars. Lately it has been moving in opposition to the US dollar, strenghtening while the dollar weakens. Looking back at recent charts, gold started its move long before the Canadian dollar reacted. Gold and the Euro seem much more closely tied, but what we are really talking about is the drop in the US dollar as compared to other currencies including gold. There are exceptions such as the YEN who have their own problems and dynamics. The following chart (interactive) is kind of fun. By right clicking on the slide box, you can change the time frame to a max of 365 days. You can do lots of other "fun" things if you are interested. stockcharts.com Your observation on interest rate differentials is correct and probably has more to do with the strength of the Canadian dollar recently as its rates have moved up considerably.