It is not difficult to mount a bullish case on gold over the next
few years, too. Copper, oil and gold, are a powerful resource
combination.
It will be fascinating to see our interest rates go up, just on
the heels of a 0.25% or 0.5% cut in the US interest rate.
Could that send the Aussie dollar up to US95c? That would
put further pressure on the translation of offshore earnings
back into Australia, and it’s not an issue that is going to go
away any time soon. It also trims the rewards of stronger
metal prices. But these metals prices need huge haircuts to
hold our resource players back at present!
I continue to look for this new leg of the bull market to
continue with a strong December-January setting the market
up for a run into 2008. The risks are rising, and food prices in
particular need watching, fuelled by the competing demand
to make fuel rather than food from crops.
It is not difficult to mount a bullish case on gold over the...
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