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In a message dated 97-07-24 23:43:44 EDT, you write:
<< In my ignorance, I do not understand XAU symbol.
I know AU is gold and I track Comex GC which in
Nov 1992 was 451.6. What is 65 referring to?
Not cash gold as that should not be far off GC?
Can't be referring to the ratio between gold and
silver because it was 90 then and is 75 now?
And, if you don't mind, why is it significant
that it should retest 65?
Thanks,>>
Roy,
The XAU is the Philadelphia Gold and Silver index. It moves pretty much in
tandem with gold. Actually it probably leads gold slightly. I don't have
the composition of the index at my finger tips, but the big name gold
companies such as Barrick and Newmount make up a good chunk of the index.
You may trade puts and calls on this index.
My reference to 65 was my suggestion that this index that stood at 155 in
January of 1996, and has dropped along with gold to the present level of 94,
may actually at some point down the road retest an earlier level of 65
reached in late 1992.
The concept of any security "retesting" a previous level is quite common.
Gold and the XAU index have yet to find a bottom since the decline started
in January 1996. I mention 65, as history shows the XAU reversed at this
level.
I'll reiterate, this is a long term prognosis in my view. I think the range
we're in now, and slightly lower, will provide support for short term bounces
and tradable moves.
One man's opinion,
PJLaird
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