Gold Plunges After Fed Rate Cut

AP ^ | 3/19/08 | STEVENSON JACOBS

[Pearls Before Swine]

But because all of the geniuses out there guessed that the Fed was going to be even more stupid and drop the rate a whole point,..

Well, if you go all the way back to the emergency 25 point drop on Sunday, its a whole point in what, 3 days? But who can remember that far back?

[rb22982]

The USD was already baked it @ 100 basis points (was at 82% chance). When it came out that it was only 75 and that TWO board members voted against it—the $ rebounded. Most think the fed is nearing being done with the lowering. So you should see the $ rebound decent in the second half of the year.

[Yo-Yo]

well yes...but the Dow Jones Industrial average is 11 times the price of gold now....and that fact would stand out more if it were in regular scale.

A logarithmic scale is used to show growth trends. If you use a linear scale and the price doubles every ten years, you get a very steep curve after awhile.

If you use a logarithmic scale, a doubling every ten years is a straight line.

Dow Jones Industrial Average: