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

To: bobby beara who wrote (13354)	6/17/1998 9:03:00 PM
From: C Hudson	Read Replies (1) \| Respond to of 116791

The weak response in the XAU and in gold stocks in general shows how battered the sector is, especially so because the large rise in the DOW and Nasdaq. If the price of gold moves up more tomorrow (which looks likely) then the PM stocks may get a burst. My thought is that since the gold stocks showed such little movement today, they may be more resilient if the price of gold goes down. At some point, money will move to the PM's, I just wish it was sooner than later.

To: bobby beara who wrote (13354)	6/17/1998 10:18:00 PM
From: MUDMAN	Read Replies (1) \| Respond to of 116791

BB: I agree the XAU had a very weak bounce. Let's see how the follow through is the next few days. I was actually very impressed that the US TSY market did not drop further than it did today. After all we had stronger than expected numbers this week (CPI and industrial production/cap utilization) than the market expected. If in fact going forward Asia will become less of an issue, than investors will begin again to focus on the domestic front. While no one in their right minds believe today's actions are a magic wand being waved over Asia, I feel these actions mark the turning point for the right things to finally happen in Japan. Let us hope so. In my estimation, the Japanese finally cried "uncle". Of course their words must now be matched by their deeds. But this time I think they mean it. Going forward, I think we can look for 30 year US TSY yields to head back to the 5.90% to 6.10% range and $/Y to gravitate to $128-132 area. I think gold will have a chance to rally to $315 but unless it moves decisively through $320 (or bonds breakdown and head towards 6.25%) I think we are in the same range we've been in. For the Dow, a test of 9211 will probably happen by 4th of July. Interesting times we are living in! Mudman P.S. Great call on the LA Times...great minds think alike!!!