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

To: Zardoz who wrote (33040)	5/3/1999 6:44:00 AM
From: sea_urchin	Read Replies (1) \| Respond to of 116759

Hutch : I am, indeed, looking at the components --- especially Euro and Yen. And, as you say, there have been mini-bull markets in gold in those countries just because of the currency devaluation. As I have pointed out, POG in SDRs is an approximation to what one really wants to know, which is an average of the gold price in the various currencies in relation to turnover in those currencies. Consider, if you will, if no gold was purchased in dollars then what would be the point of measuring POG in dollars?! So, what is required is a complete index of turnover everywhere (value times velocity) for gold and not just POG in dollars. You ask : "What happens when GOLD priced in Euro's hit's a max, and they start selling?" Indeed. When that happens the currencies rise in value against the dollar and the mini-bear market in currencies is replaced by a mini-bull in dollar denominated gold. This to-and-fro takes place all the time. What we (I presume) are both looking for is a an overall index of the price relationship of gold to all currencies. That is why I suggest that you look at the SDR/gold relationship as it is and not attempt to dissect its components. And, when you study the moving average of the gold price in SDRs it looks like it is turning upwards. That's all I am saying.

To: Zardoz who wrote (33040)	5/3/1999 7:48:00 PM
From: goldsnow	Respond to of 116759

Australian Dollar Holds Near One-Year High as Global Economy Seen on Mend By Vivienne Stanton Sydney, May 4 (Bloomberg) -- The Australian dollar was little changed near its highest level in more than a year amid optimism demand for commodities, Australia's biggest exports, will increase as world economic growth picks up. ''Everybody's bullish on commodities and world growth,'' said John Reedyk, head of foreign exchange sales at Australia and New Zealand Banking Group in Melbourne. ''That's boosting commodity currencies like the Aussie.'' The Australian dollar, or Aussie, rose as high as 66.60 U.S. cents, the highest since March 30 last year, from 65.20 cents yesterday. It was recently at 66.25 cents. The currency has risen about 8.5 percent this year, making it the best performing currency against the U.S. dollar among the world's most-traded currencies. The New Zealand dollar rose to 56.02 U.S. cents from 55.92 cents. It tends to track the Australian currency because Australia is New Zealand's biggest trading partner and both rely on commodities for export earnings. In the past two weeks the Australian dollar has added about 4 percent amid expectations growth is returning to some of Asia's recession-bound economies, spurring demand for raw materials which make up about two-thirds of Australia's exports. Strong growth in the U.S., the world's biggest economy, has fueled expectations global demand for commodities rebound. The Dow Jones Industrial Average yesterday climbed above 11,000 for the first time, led by mining and manufacturing companies. Those gains are helping boost commodity prices, which in turn is stoking demand from offshore investors for Australian resource stocks, such as Broken Hill Proprietary Co. The All Resources index on the Australian Stock Exchange rose 18 percent in April. The Goldman Sachs Commodity Index of 26 raw materials rose 0.66 to an 11-month high of 161.64. Commodities make up about two- thirds of Australia's exports. Capping gains are expectations that Australia's trade deficit -- the 16th in a row -- will help bloat the current account deficit to about 6 percent of gross domestic product in 1999, as exporters of everything from wool to minerals struggled to sell their goods. Australia's trade deficit unexpectedly narrowed to A$1.5 billion (US$985 million) in March, the Australian Bureau of Statistics said. A widening trade and current account deficit can undermine a country's currency, and investors typically demand a higher premium on a country's assets. ©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks.