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

To: Rarebird who wrote (30389)	3/21/1999 6:19:00 PM
From: Zardoz	Read Replies (4) \| Respond to of 116791

"The Fed will be forced to raise interest rates later this year to contain rising inflation. This would be quite bullish for Gold and the XAU. Why? The Stock Market would collapse and the dollar will follow, which will be much more bullish for gold than will be the minor bearish effect of a small rate increase, especially as few other countries are likely to follow, given high unemployment and other problems." But if the bonds rise in yields, can that not attract cash inflows out of Europe, Asia {lower returns in search of higher}; and thus strengthen the US dollar and thus lower Gold. And since the XAU is based on both GOLD & interest rates {PE & yields} then could the XAU also melt further. After all is it not the rate change of the last few weeks that has mooted the XAU rise?