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


To: Jim McMannis who wrote (5165)4/8/1999 3:32:00 PM
From: Ahda  Respond to of 81169
 
They lack the spark called ancient, cane and all.



To: Jim McMannis who wrote (5165)4/8/1999 3:39:00 PM
From: Tom Byron  Read Replies (3) | Respond to of 81169
 
and russell 2000 down....:)) jimmy boy...ya DID see the russell 2000 weekly chart i posted yesterday...yes?



To: Jim McMannis who wrote (5165)4/8/1999 3:57:00 PM
From: Zardoz  Read Replies (1) | Respond to of 81169
 
"They dropped rates in Europe. This izzzz guud, not bad however. For Stocks and gold."

Nope, bad for GOLD. Always has been, always will be. And since it's Foreign rates that got cut, it's only good for the DOW for a short time. Once the rally in US bonds and equities subsides {due to UK cut}, the pressure goes back onto the USA bonds, and the currency exchanges. Money always seeks a highest 'REAL' return possible. Within UK, the price of GOLD may well rise {in pounds} but not in Dollars.

GOLD does best in deflation, not inflation. Often inflation causes a deflationary bubble. The despairity between bonds yields and inflation rates is what causes the price of Gold to rise. Seldom; if ever; when the yields on bonds are higher then inflation rates and growth rate, does the price of gold climb.

The XAU has been leading this trend down. Since the XAU is interest rate sensitive, Dollar sensitive via Price of Gold sensitive. pretty sensitive in all. Think Gure Byron lows for gold are coming feasible.

Seems everyone expected a 0.50% cut. {interesting article Darleen} maybe further cuts a coming?