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To: Bid Buster who wrote (275447)	1/28/2004 2:45:23 PM
From: NOW	Read Replies (1) \| Respond to of 436258

i am not sure about that...raising rates means certain deflation.

To: Bid Buster who wrote (275447)	1/28/2004 4:26:41 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

even the threat of rising rates are good for gold Wrong IMO. Raising rates supports the US$. Gold has been tracking the US$. M

To: Bid Buster who wrote (275447)	1/29/2004 8:46:44 AM
From: zonder	Read Replies (3) \| Respond to of 436258

rising interest rates or even the threat of rising rates are good for gold I doubt that very much. Rising rates, or even their expectation, is good for the USD (as we saw yesterday). Gold was attractive mainly as a safe haven from fiat currencies, especially the USD, thanks to the Fed repeatedly bashing their own currency, rather obviously hoping for its devaluation. rates can't go lower Theoretically, they can. Japan showed the world that rates can even be negative. gold is an inflation hedge and a threat of upping rates is just that. I have my doubts about just how good an "inflation hedge" gold is, and it certainly is not the only safe haven from inflation prospects in the US. Even so, higher interest rates LOWER inflation expectations. I cannot follow your reasoning that upping rates would increase inflation expectations, which would then be good for gold... The behaviour of gold prices from yesterday afternoon until now does not support your view, in any case.

To: Bid Buster who wrote (275447)	1/29/2004 11:12:29 AM
From: zonder	Read Replies (1) \| Respond to of 436258

11:02am 01/29/04 Gold futures under $400 an ounce By Myra P. Saefong SAN FRANCISCO (CBS.MW) -- Gold futures fell under $400 an ounce for the first time since Dec. 2 as a change in the Federal Reserve's statement Wednesday raised the prospects for strength in the dollar as well as a hike in interest rates. February gold is at $396.50 an ounce on the New York Mercantile Exchange, down $18.10. cbs.marketwatch.com{B461A4A5-BB4A-422C-AFEE-8B475967D853}&siteid=bigcharts&dist=bigcharts