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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?


To: SliderOnTheBlack who wrote (3888)11/28/2006 11:31:58 PM
From: CapitalistHogg™  Read Replies (1) | Respond to of 50722
 
It's what caused the violent collapse of Gold back in May.

yup i know what that is, and it's eventually gonna happen again. japan signaled it was going to raise rates... carry trades unraveled and serious across the the board selling in all asset classes began. fun fun fun

can't wait for it to happen again.



To: SliderOnTheBlack who wrote (3888)11/29/2006 7:57:13 AM
From: Fun-da-Mental#1  Read Replies (2) | Respond to of 50722
 
"What caused the violent collapse of gold back in May" - I thought you were going to say the change in interest rates and inflation rates. Normally the gold price correlates with these. The period of rising gold prices was the period when the Fed hiked rates 17 times. Interest rates peaked in May and so did the gold price.

GOLD
stockcharts.com

FVX
stockcharts.com

GOLD/FVX
stockcharts.com

Note how this last chart is relatively flat overall (compared to the previous two) meaning the ratio is fairly constant. Note also the ratio is now at a peak as high as the one it reached in May.

Fun-da-Mental

P.S. Can someone tell me how to copy graphics directly into the message?