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

To: Alex who wrote (23055)	11/17/1998 4:01:00 PM
From: long-gone	Respond to of 116764

I'm ready!

To: Alex who wrote (23055)	11/17/1998 4:41:00 PM
From: Zardoz	Read Replies (3) \| Respond to of 116764

"Deflation is now seen as the major threat as opposed to inflation. We're witnessing the reflation of the global economy. This should eventually lead to a surge in commodity prices as economies move to spur growth, which in turn should boost gold." Unless the commodity deflation is sufficient to be obscured by growth. It is possible; probable; that the most recent lowering of the FED funds rates will NOT result in an increase inflationary trend for a LONG time. During the last two weeks we have seen the US treasury backing away from supporting the 30yrs, and thus lowering expectations of this rates cut. M2 growth has been stubborning low, and unlikely to rise soon. This means that as I stated before, they intend NOT to reinflate, but have chosen the path of Fed Fund rate cuts, Discount rate cuts, and WILL NOT pump the money supply. This would suggest growth will be higher in the short, mid, and long term. And even the discount rate, fed fund rate, can depend a lot on a day to day basis. So in essence only a tone has been set on the market. I look for GOLD to continue a downtrend towards $260 before end of Jan. I'm also looking at a very unstable DOW around May 1999, maybe a 65% crash, off of what will be a high of 10,200-10,400