Abet Chichi2

[chichi2]

AdenSisters: WklyMarket Commentary, July24
July 24, 2003

By Pam and Mary Anne Aden



BREAKOUT

Gold, silver and gold and silver shares soared yesterday as the potential for even lower interest rates pushed the dollar down. A renewed rise has begun and gold is now poised to rise to a new bull market high before it's over, likely to near the $415 level. Plus, with gold shares and silver showing unusual strength for the first time in a year, they too appear to be anticipating a good upcoming rise. If you haven't bought yet, buy now.

The U.S. dollar is coming down again and this too will provide a boost for gold. In other words, the currencies are also starting a renewed rise and again, if you haven't bought, buy now.

Bonds, however, fell further this month, triggering our sell signal. The major trend is turning down for bond prices but since the market is very oversold, we'll likely see a near-term bond price rise first, which will provide a good selling opportunity.

Stocks continue to chug along. The Dow Industrials is overbought but if it closes above its June 17 high, the rise will continue. But if it closes and stays below 8990, the rise will be over.