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

To: paul ross who wrote (26243)	1/15/1999 1:26:00 AM
From: Sergio R. Mejia	Read Replies (1) \| Respond to of 116764

"gold bullion is poised for an upside breakout". From Kaplan's site: "In a surprising departure from the brokerage community's neutral to bearish near-consensus on the future price of gold, Goldman Sachs' investment bank released its weekly FX report predicting that "the spot price of gold bullion is poised for an upside breakout." Part of the reason for such a prediction is their belief that the Australian dollar will rise sharply against the U.S. dollar, as it is close to breaking above a downward sloping trendline. A strengthening Aussie dollar will make Australian gold producers less eager to sell gold forward, as they will receive diminished U.S. dollar returns. "

To: paul ross who wrote (26243)	1/15/1999 7:48:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116764

Paul, You bring up a good point. The specs are "short" for a good reason. They expect the price to go down under deflationary pressures. The commercials are "long" for quite another reason.... To maintain their pricing structures and profit margins. They are defending what indeed may be indefensible in order to hold the line here in this price range. They know if they break through support here, it will have a dreadful impact on gold prices as gold wallows around at lower prices looking for another price support. So goldbugs have to convince others to buy gold in order to force a squeeze. If they fail to convince enough buyers to hop into the metal, the specs will win and gold will able to be had a far lower prices. (And Fiat money will reign once again.) I still think Bill may be on to something, but I'm just seeing it from a different perspective. Gold longs are wounded and Specs are smelling blood in the water. And there is no reason for the Fed to step in and intervene when gold competes with paper currency in people's hearts. Regards, Ron