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

To: Enigma who wrote (31805)	4/15/1999 12:13:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 117012

With Reference to: >>"re: higher bond yields bad for gold? >"No, in the past, it has shown a falling faith in US $ and their underlying bonds." #reply-8932903 But it depends on the relationship between BONDS, DOLLARS and inflation. Not just bonds, and Dollar. Inflation: comes in many forms. Start here: #reply-8772586 , and read the replies to the replies. "What do you make of the gold chart - is this congestion prior to a move - even UP - PTL?" I don't think that this Gold price move has anything to do with future higher prices. And higher yields are VERY bad for gold. Yields are FINALLY starting to reflect the real inflation rate. But this is causing the bubble between bond yields and CPI inflation. What this will do {IMO} is attract money from elsewhere; Europe more over then say Japan. And this will cause the US dollar to appreciate. charts.quotewatch.com A move in the POG with a move in US Dollar index usually is a bad sign for gold. Reason: Currencies control gold more then supply and demand. I believe that the DXY0 will climb as higher yields are gradually building and although many suggest this is inflation {they are wrong} The markets are always FORWARD looking, and this is a preceived forward inflation. But really the inflation has always been there. Few consider the affect of monetary inflation {M2/M3 growth}, and how it can float CPI data lower. Which is why when CPI is less then 1%, the 30 yr bonds are 5% or higher. Gold does best in deflation. quote.yahoo.com^TYX&d=1d Consider the Euro, which is slowly decreasing over time. You see the US Bonds appreciating. Would you not move money into a higher yield, knowing that US FED will soon turn on M2 again, pump the system, and lower the yields. Today's action is more inline with spot buying and future selling.