April 27, 2008

Replacing the GEO Trio with and Introducing the new GYN Trio 
As preliminarily mentioned in the April 23 report Outlook for Gold: Headwinds from Interest Rates and Carry Trade, a new Trio: Gold, Japanese Yen, and US T-2 Note (The GYN) is being introduced in this site as a replacement of the GEO Trio (Gold, Euro, Oil). The GYN is a representation of the strong connection between interest rates and currencies in the context of the business, interest rates, and monetary policy cycles. As a currency, Gold is directly and significantly affected by the circumstances prevailing during the different phases of these cycles. 
The GYN Trio replaces the GEO in view of recent experience that has demonstrated the greater sensitivity of Gold and certain currencies, such as the Japanese Yen, to interest tates movements. By contrast the Euro turned out to be less sensitive and, thus far, Oil has not confirmed any stable relationship with currencies or interest rates as believed earlier.
The GYN will be monitored weekly as the GEO was. Reports will be posted in the GYN Monitor section of the site.
See the first GYN Monitor report 
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