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basserdan

08/08/04 9:11 PM

#281266 RE: Public Heel #281260

Good question. Gold moves inmverse to the $US, but also is somewhat leveraged. For example, when the $US dropped 1.5% on Friday, Gold moved up 1.9%. Usually, the leverage is greater than that.

Let's say that Gold will move 130% the inverse of the $US. For Gold to hit $1000 (+150%), the $US will have to drop 116%.

You laugh? OK, smart guy, what do you think it will take?
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I don't think there are any hard and fast rules to this regard.

At least I've never seen any......

Let inflation get really out of hand and there will come a point that the PoG will go up regardless of what the dollar might be doing.

Inflation has to be a necessary ingredient if one is baking a $1000 per ounce gold cake.
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seminole

08/09/04 10:10 AM

#281364 RE: Public Heel #281260

<<< Usually, the leverage is greater than that.>>>

The leverage with the inverse relationship probable would increase with increasing fear, related to the dollars decline. Right now some view the dollar decline as a positive (good for trade).