GATA makes more trouble at the NY Fed

11:55p EDT Wednesday, June 7, 2000

Dear Friend of GATA and Gold:

This commentary by Clive Roffey at the Moneyweb
Internet site is interesting for its acceptance
of GATA's contention that the price of gold is
being manipulated. It's all the more interesting
for its suggestion that the manipulators are
losing control.

Please post this as seems useful.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Has the gold catapult started?

By Clive Roffey
a href=http://www.moneyweb.com.zahttp://www.moneyweb.com.za/a
June 7, 2000

My oft-stated analyses on gold have continuously
defined the bullion price movement as a major base
formation in total contrast to the huge top patterns
evident on the world's equity market indexes. I have
frequently stated that when the lift upwards from this
base occurred it would be vicious and take the form of
a catapult, or almost vertical move.

Last Friday evening the gold price suddenly jumped $10
in the space of a few minutes as US futures players
covered their short positions on the back of a falling
dollar.

For any market to have an unexpected vertical move out
of a negative psyche it needs to have a sudden jolt
that turns the prevailing fundamentals on their head.
In the case of bullion there can be no doubt that the
US bullion houses have been keeping the lid on the gold
price to protect their short sales at the $310 level.
But the combined forces of a falling dollar, rising
commodity prices and weakening stock markets are
starting to take effect.

My analysis continues to look for the vertical catapult
with a target of around $385 by the end of the year. In
this context the shares have formed major buy signals
as their oscillators refused to mirror the new lows
made in the early part of last week. Avgold is a
classic example.

For the past month Avgold's share price has drifted to
new lows but the oscillator has refused to confirm this
movement thereby setting up a major divergence buy
signal. The identical data is to be found on the charts
of Anglogold, Af. Lease, Durban Deep, JC Gold, and
Goldfields.

All of these shares can be bought for substantial
upside moves over the next three to six months.