Replies to post #104832 on Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Zeev...

I agree with both your call on the dollar and on gold, but think both may be delayed a bit until this rally is over. At the moment, I look for AG to try to take the markets higher which implies he will need to support the $USD, and that would hold gold down. Possibly all the $USD needs for a short term support at the 95-96 area vs the $USD index is for the Fed to hold on rates today.

Longer term, the $USD has to go lower simply due to overwhelming fundamentals and that will take gold higher - just as the markets will be driven back down for similar overwhelming fundamental reasons. The Greenspan Gambit will fail, but to date it is still in play.

As always, just my opinion and I am no virgin at being mistaken.

mlsoft

[odiemutt]

RE: I still have the target of at least $1.18 to the Euro.

You say this is good for price of gold to go up. Apparently this is also good for stock prices, seems faster dollar drops faster stocks go up. Could you explain why this is so?

om