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

To: donald martin who wrote (33881)	5/14/1999 10:53:00 AM
From: Ken Benes	Read Replies (1) \| Respond to of 116789

Don: You are not looking at the markets correctly. Headline stories do not make the gold market unless they are reports of an imminent sale. What will effect this market will happen very insidiously and the beginnings are evident. CPI numbers come in worse than expected, the long bond continues its sell off. At some point, this will have a drag on the US dollar. As bonds and the dollar decline, gold will begin to rise no matter what the central banks do. A possible clitch, the Fed could raise short term rates which will be discounted by the anticpatory rise in the long bond. The dollar will regain strength and the process will be on hold. The intangible, the US is the market of last resorts and any kind of Fed intervention that slows the economy may have profound effects on the Asian markets that are beginning to recover. As far as the Asian economies go, you can bet your bottom dollar that if they have not already begun to diversify their holdings out of the dollar, they will do so very shortly. The bombs over belgrade hit more than a building, they struck the heart of the Asians which had already been pierced by the harsh treatment from the US/IMF these past several years. Gold may indeed hit 250 before it goes above 300, but the game is playing out. Ken