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To: Thean who wrote (3511)	9/29/1998 5:01:00 PM
From: Broken_Clock	Respond to of 14427

Thean, I agree about AU failing the 300 test this past week. However, SSB knows very little(how gold is priced) or knows much and is spinning the "golden" web(he and his clients are short, like most institutional investors). -g- Gold is priced in US$. If the dollar drops, gold will rise in our $ terms. End of story. The concept of gold as a "commodity" is erroneous. Point: when is the last time you ate some gold or put some in your tank?? There is a supply/demand function which can have a drag on gold(CB selling) or spur gold on(stop of CB selling) but these factors have more to do with the power of the current trend rather than changing its direction....IMO. Gold is the ultimate store of value. In actuality, the US$ is priced to gold, the US$ is the commodity. If you're really interested in reading up on some good articles on gold, pm me and I will send you some links. Final note, I sold all of my remaining NEM options today for 150% profit on the total trade. After my disasters in the osx, I am happy with that. A wise trader once told me: "Preservation of capital is key." You may know him...he is you. VBG I will play it again if gold can break 300(xau will then break 80, NEM 25, abx 23).

To: Thean who wrote (3511)	9/29/1998 5:37:00 PM
From: Broken_Clock	Read Replies (1) \| Respond to of 14427

The key here is the US$ index which is heavily weighted to the DM. Dollar ends U.S. mixed after Fed cuts rates NEW YORK, Sept 29 (Reuters) - The dollar trimmed overnight losses against the yen but slipped against the mark after the Federal Reserve lowered interest rates by a quarter percentage points, as widely expected, dealers said. ''All in all it met expectations so the market is a little confused as to what to do next,'' said John McCarthy, senior vice president at ING Barings Capital Markets. Ending weeks of speculation, the Fed reduced the target for the fed funds rate charged for overnight lending between banks by one quarter percentage point to 5.25 percent. It was the first interest rate cut since January 1996. The dollar slipped against the mark, feeling pressure as U.S. stocks turned lower on disappointment that the easing was less than the 50 basis points some expected and did not include the 5.0 percent discount rate. ''I think the foreign exchange markets will trade more on flows of capital than interest rates, meaning that if capital markets get hit here as a result of this the dollar will trade down,,'' said John Nelson, forex manager at ABN-AMRO Bank. The dollar slid against the yen overnight, hurt by reports that the world's big economies were looking at ways to aid the Japanese unit and last-minute wagering before the Fed move. It ended at 134.52/62 yen up from 134.22/32 at the open but well below Monday's 136.00/05 close. It slipped to 1.6730/35 marks from 1.6740/50. The Dow Jones industrials ended down 28.32 at 8080.52 after paring a late 93 point decline. The dollar had priced in the easing after recent suggestions by Fed chairman Alan Greenspan that global market turmoil since August had become a greater risk to the U.S. economy than inflation. The near collapse of a highly-respected hedge fund and profit worries at major financial firms all but ensured some sort attempt at confidence building by the Fed. (Note: this article is ''in progress''; there will likely be an update soon.) biz.yahoo.com