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

To: Bill Murphy who wrote (44)	6/5/1998 3:37:00 PM
From: marcos	Respond to of 81137

I'm long gold stocks, and watching with interest, Bill #reply-4742905 eom

To: Bill Murphy who wrote (44)	6/6/1998 9:01:00 AM
From: PAUL ROBERTSON	Read Replies (1) \| Respond to of 81137

Bill et all, Gold is acting very poorly on the technical side while the XAU is acting even worse.On the other hand,the 30yr is looking just about ready to break out of its 5.75-6.10% range.If gold moves below its low of last Monday it is likely to move much lower.Keep your eye on the 30yr yield,it will likely break out first.The action of gold and bonds next week are key.The XAU seems to be telling us that gold will eventually move lower.I am long the bonds for now looking for the yield on the thirty year to rachet down below the 5% handle before year end.There is a powerful 19.2 year cycle at work.Both markets should reverse dirrection possibly only early next year. Fundamentally this also makes sense as the great powers that be,in my opinion, are not doing enough to stop the deflationary forces that are building. If the yen continues beyond the 140 level this surely will be another sign of deflationary trouble.A technical retracement back to the 135 level is quite possible but would likely be only a breather before it were to move to about the 150 level. It would seem that only powerful concerted CB action is going to arrest this deflationary crunch.The USA may attempt to stop it with patchwork.eg.buying Russian paper to prop it up,restore confidence etc...but I believe only printing on global basis will work.At this time congress can not even approve the 18 billion for the IMF.Robert Rubin sounds quite concerned. Regards, Paul