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

To: philv who wrote (22074)	12/3/2004 5:35:10 AM
From: sea_urchin	Respond to of 81135

Phil > But today it took a whacking down, and looks very weak in the near term, while the dollar looks even weaker. Unless of course you believe that the dollar will strengthen soon, and gold is just ahead of that curve There's a trading range. The gold price doesn't follow every tiny move the USD makes. But, if one looks at what has happened over weeks or months, then one sees that the movements in the gold price have corresponded inversely to the movements in the USD. In other words, statistically, there is a higher inverse correlation between POG and the USD than anything else. Despite hopes of many gold investors that gold has a "life of its own", it hasn't happened. It may yet do, but so so far, it hasn't happened. > But the long term, doesn't look especially inspiring for the dollar in my eyes (through my glasses) I have posted articles to that effect only yesterday. But the non-related, random movements do not mean that because gold price fell and the dollar also fell POG is not inversely related to the USD. Consider two horses tied together with a fairly loose bridle rather than a horse and rider. As we sit here, the long-term outlook for the USD is still bearish and, likewise, for gold is good but, short term, anything can happen, in fact, the USD could very well go up -- as I mentioned, because interest rates are rising (Treasuries falling).