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I generally agree with you ... dollar and precious metals appear to be
moving tightly and inversely. While both gold and silver appear to be
having tradable rallies, I am not convinced that these rallies will have
more staying power than the last half dozen. The dollar appears to be
overshooting "normal" retracement targets. Price has moved down through
the 10750-10850 area which should have provided some pause in the
decline. JY took a big leap which appears to have completed an early
reversal of the final decline. BP has also moved up far more
aggressively than it "should" for a w.4 correction. In the bigger
picture, the world's reserve currency has barely declined a blip but
there is much to suggest that bond and equity market investors should
sit up and take notice by planning to diversify some assets away from
the US$. It is not unreasonable to believe that the dollar will correct
significantly simply because it has run to such an extreme - I do
believe that one year from now that the dollar will have declined
relative to other major world currencies.
Earl
----- Original Message -----
From: <Jpilleafe@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Tuesday, June 06, 2000 5:51 PM
Subject: [RT] Re: inflation?
> In a message dated 6/6/00 4:46:02 PM Pacific Daylight Time,
> Proffittak@xxxxxxx writes:
>
> << today gold had a follow up day with another $3 up >>
>
> Hello Ben,...
>
> Directly the result of US Dollar weakness. To be bullish on Gold
> I would have to see additional downside for the US Dollar,...which
> I do not to any substantial degree. My suspicion is that if the
S&P500
> breaks out to the upside (note NYSE Breadth,..Utils +2.2%,...NH/NL's
decent)
> then the US Dollar might rally and re-trace some of it's recent
decline. This
> would bring some weakness into the price of Gold. Just my thoughts.
>
> Regards,...JIM Pilliod
>
>
>
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