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Zeev Hed

10/20/04 10:57 PM

#312475 RE: PENNYPRINCE 1 #312472

It was 80 yens to the dollar, no history against the Euro (it is now at a historic low), but would not be surprised to see 100 yen to the dollar and $1.45 to the Euro if the feds decide to hold rates much longer. I doubt they will, however, so I would use about 5% higher as the the through in the dollar. After that, who knows, a recession will have a negative impact on gold, IMTO, and if the dollar strengthen just due to higher rates and less imports during the next recession, Gold may easily meander back to the $380/400 in the next year. Until we see major world wide inflation, the dollar probably is the best forecaster of gold movement. All IMTO, and Dan knows much more on the subject.