The Greenback And Gold
posted Apr 24, 2004 at 10:17PM
In my mind I had written a long insightful commentary to go along with the charts as well as links to various commentaries arguing bullish and bearish positions. Good articles speaking of the frothy, bubbly nature of the asian property market, the potential for USD short squeeze buying, unimpressive gold jewelry demand andf how the first million barrels of oil from Libya is steaming into the US to the rescue.
Kerns, McClellan, Moriarity and Bloom say stay out. Saville, Hamilton, Ackerman say this is good time to buy. All of these are "good" analysts and shows the sharp differences between people in interpreting the gold market.
The gold permabulls and prechtorian gold permabears, as always, are singing their same tunes.
I was going to discuss my own pet theory that greenspan want to artificailly boost the dollar purchasing power to lower oil costs by talking about rate hikes, even though he won't raise them for fear of killing the general economy.
The short version is that I remain in cash on the sidelines. If the USD makes a new pivot low...then my interest in golds will perk up. My fantasy is that a mighty USD short-queeze occurs that annihlates gold shares. To me the higher the USD goes on "artificial" buying, the better gold looks.