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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: gennady who wrote (12214)	5/27/1998 2:29:00 AM
From: Peter Neidhardt	Read Replies (1) \| Respond to of 116836

I think this is not necessarily the beginning of the end for the DOW and Gold. Gold had been remaining somewhat strong the last 2 weeks at the $300 level against a lot of shorts in the market. Rubin's unfortunate message spurned a dive in the gold market which I do not think will sink the sector. I wouldn't be surprised if we are trading up around $300 sometime next week (although it could just as easily hit the 280's). As we get closer to the ECB's reserve news I cannot think that this will not at least present a somewhat bullish push for gold, maybe enough to rally it or at least keep it above $300. Many of you are correct in saying that there is still is no strong pull for gold upwards with relatively low inflation kept at bay, a strong dollar and lack of buying over in Asia. I would imagine one can only play the ups and downs in the market over the next couple of months. As people mention, there is more upside room (potential) than downside to gold. Gold should stay in and around the $300 level until the U.S. (and Asian) Economic fundamentals change (most likely the rest of this year and early into next). Mind you if the DOW goes to hell then who knows where gold will be. Anyone have an idea what will happen to the POG if we see a correction (crash) of 10%-20%? Will she tank or rise....not too knowledgable in POG's historical reactions. On a separate not, my gut tells me that the DOWN isn't finished yet. Earnings are down from past quarters yet are still strong. Until the week when Microsoft, Dell and IBM type companies report decent losses back-to-back or when Mr. Greenspan presses the button do I worry significantly. Logically and statistically the DOWN should sink the next month or two (because of media-exposure, Asia crisis and reduced earnings) however I just have this feeling that we can eek another 5% or so out of the markets. Volume has been low on the NYSE and NASDAQ so we obviousily aren't seeing a rush to the door. We might just see a temporary pull-back the next 2 weeks but the DOW 10,000 question is definite possibility in my books. Any thoughts? Pete