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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (3989)	3/8/1999 5:15:00 PM
From: Zardoz	Respond to of 81904

"All the same, with US dollar index being so high, I find it strange that POG is so strong. In my experience, it is unusual for the gold price to make a sustained rise when the dollar is strong and there is no inflation. I can't work out the significance of what is happening. Can't be the goldbugs buying --- they haven't any money left!!" First gold in SDR really does look good. Quick note: Deflation in Euro-land, makes SDR climb, makes US dollar index climb. Makes it profitable to buy gold in spot, and hold while Euro dives. Was not the futures volume low? Open interest on April Gold futures still climbing. I suggest that this is gold speculators whom don't mind buying spot, selling futures, and will wait for gold to drop. The Euro is now back to the EMU conversion rate of August 98, so it may stabilize, if deflation is mooted. Otherwise Gold will still climb relative to Euro {in deflation is a real continuing problem} Even todays rise in gold has not broken a trend... Although it was fun watching whomever try. Wait for the Euro, Yen, Pound to stabilize. XAU: mypage.direct.ca Red line points to the decreasing triangle. Now it's presently in an uptrend channel. Stochastics are showing that the buying is nearly done. The white line point to the May 96 long down trend, and shows it's AT the resistance low. It would need both FUTURES volume and spot for this temporaly rally to go forward. The XAU still needs to get above the 66.75 resistance line, which dates back to june 98. How much of todays XAU was due to HM bidding for ARP.VSE, taking the pressure of ABX to offer more. Causing the XAU to climb, and maybe taking GOLD with it? As ABX now has more cash to be used in hedging. To which they buy the spot, sell the futures, and wait.