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

To: philv who wrote (18430)	5/28/2003 6:32:47 PM
From: philv	Read Replies (1) \| Respond to of 82314

I should also add that there are times when gold moves in unrelated and unusual spurts, as it is subject to such vagaries as world events, confidence, central bank holdings, manipulation as a commodity, etc.

To: philv who wrote (18430)	5/28/2003 11:48:14 PM
From: Zardoz	Respond to of 82314

The correlation between Gold and currencies has been fought on the Gold Price Monitor Thread years ago. If you really are truly interested in Gold, you can grab your excel program, the data for the currencies, and a host of other data and do a statistical analysis of it all. You would see that the Strong Dollar policies of the treasury in USA has precluded the correlation between gold and USD from 1987 onward. By equating the inverse of the US Dollar index to the price of gold you are looking at what is a basket of currency versus the USD and thus becaus of components that have more growth and lower inflation then USA give a greater inverse correlation... I've found in the past that both the CAD and AUS grave the highest degree of correlation. The fact that those are countries that have higher yields generally on their treasuries gives those companies that hedge a better place to invest their hedge programs. So when the price of Gold rises and they sell forward into the futures they often invest their USD sales into the foreign countries like Canada and Australia.