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

To: The Street who wrote (28752)	2/22/1999 8:52:00 AM
From: Hawkmoon	Read Replies (1) \| Respond to of 116836

May I ask you a question? Sure Street.... But after I answer, I expect you to give me your opinion as well as to why gold is staying in the recent trading range between $280-$290. Demand is up in parts of the world, either due to cultural demand or fears of Y2K (a few of latter, I admit I share). They are taking physical delivery of gold it would appear and thus removing it from the marketplace. But you have aggressive forward sales by the mining companies, who apparently seem to have little faith in higher prices for gold this year. Maybe they are predicting that deflation will grow worse reducing the value or need for gold. But essentially, I think the Fed and ECB desire to keep the gold market in a trading range and long-term downtrend line for the purposes of demonetization. It does them no good to permit gold to plummet, which it might have already done were it not for the unique factors we have at work in the marketplace. And I suspect the Fed will treat the gold market like they treat the money market. It there is a liquidity crunch in gold, they may sell some of there reserves to meet demand rather than see the POG compete with the dollar as a storehouse of value. Regards, Ron