The October gold contract fell to a new low of 273, bouncing back over the 280 level. We think the worst of the decline is over and that the yellow metal is showing signs of stabilizing. The yen is now trading under the 138 level. We look for more declines with the yen stabilizing between the 137-138 level. We think the Fed will be forced to lower rates to help ease the global situation.
Turmoil continues to rattle the world markets.
The Russian crisis continued to deepen as the Clinton trip gave some hope that further aid is forthcoming. The decision to impose capital controls by Malaysia is putting into question whether other Asian economies will follow. We think so, and a weaker U.S. Dollar would, in our view, help ease the crisis. We believe Mr. Rubin may shift his view on a super strong dollar. Consensus Inc. All American and Pan American rights Reserved.