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To: Ira Player who wrote (50365)	1/6/2004 1:08:16 PM
From: DanZ	Read Replies (2) \| Respond to of 53068

You're right, but that's because those foreign currencies have gone up about the same percentage as gold. Should foreign currencies weaken against the dollar, gold in all likelihood would go down. Check out a chart of gold versus the dollar. They are generally inversely correlated. Gold is getting into some stiff long term resistance between 400 and 500 an ounce. It will most likely trade in the 325 to 375 range eventually. Gold is a commodity, and its uses are limited. Just think about where it is used and how the supply and demand are affected by the price. The demand for jewelry goes down as the price goes up, and I don't think that there's enough demand to support a price of 450 for long. It's all being driven by currency fluctuations and speculation, not by demand for end products.