precious metals breakout imminent, page-4

The answer is in the $US, its twin deficits and what else (Iraq etc).

The lower the dollar, the higher the gold price. True when the DOW goes down, it can be of rising oil prices and there is some connection (not a very good one) between oil and gold.

At the moment, a lot of $US are being sold (Do you want any?) and this depresses the $US regardless of a temporary rise of the DOW (Which is too high anyway and to many people is irrelevant-They prefer S&P200 or higher).

Hedgefunds have moved in as well.

A very sad story but gold bugs like it!

Gerry