Gold stocks are likely to anticipate the end of the rate cycle and bottom early. It's a complicated picture but if one believes the dollar is going to resume it's decline buying a little here and a little there may work 6-12 mos. out.
Greenspan is probably setting up his successor to cut rates early next year. By that time it should be apparent the consumer is hurting.
... we lost our broad-band connection Saturday night, and did not get it back until this evening ... YIKES
<<short term, the break in HUI and XAU (and the metal) might be a headfake, but on the other hand, the reality of the dollar strengthening, particularly against the Euro and the Yen (a driving force behind the gold weakness), is rooted in economic comparative economic activity (or at least the market perception of such)>>
... looking at comparitive charts from late-2000 to mid-2002 does not tell me much ... what do you see here, Zeev, Dan et al? ... anything useful?
EDIT: of course, with short-term interest rates AND the US Dollar rising now, it might be tough for GOLD to rally.
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