Zeev,
You and TJ make a good point. I guess the real test will be if/when the general market pulls back: will metal stocks go down with them, or move up? With key resistance around XAU=79 and HUI=155, the charts seem to imply that a large move is likely in one direction or the other.
Any thoughts on Jim Sinclair's economic analysis? I am an engineer by training, not an economist, so I am not the best person to evaluate his thoughts. Whether gold will ever be used to monetize the dollar is not the question now, in my opinion. Sinclair seems to argue convincingly that inflation must begin to give Bush a chance at re-election, and the dollar must drop to avoid becoming "zero bound". I think most people would agree that the falling dollar has been the primary reason the dollar price of gold has risen. POG in Euros is not rising. DXY0 took a month in the 92 to 94 range before it could finally pull together a dead cat bounce. The rally seems less than impressive and seems to fit what Sinclair has been saying. Any comments?
TIA - Ken
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