Monday, June 12, 2006

CAN GOLD AND OIL DECOUPLE...?

The whole purpose of driving down evil gold is to stop the rise in oil...

Unfortunately, gold is down but oil is still above $70 despite the wild sell off of gold and gold stocks...

Unless oil starts to plunge, like gold and other commodities, the recent experiment in stopping inflation by wacking gold and gold stocks will be for naught... And gold will likely creep back up...

Still selling gold will be the "default position" for the central banks and market masters for the foreseeable future....

...in between the promised rate hikes that is...

Meanwhile among the "normal" investors...bonds and stocks will struggle with the daily yada yada.... With declines in evil gold providing the only bright spot...