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  • The Demise of the Dollar?

    Posted on October 6th, 2009 No comments
    The Falling Dollar

    The Falling Dollar

    Word has it that China, Russia, France, and Japan are working behind closed doors to take down the all mighty US dollar. The deal seems to be revolving around the energy sector and pushed heavily by the Arab corner. You probably guessed it by now, oil for the Euro. Or perhaps, oil for gold?

    This is speculation, but the recent demand in gold is quite unexplainable. Inflation is not rampant, retail gold sales are actually declinging, but gold price is rising? The only knowledgeable explanation is institutional buying or some kind of unkown demand. Gold can’t rise without demand, and people are having a tough time figuring out where that demand really is. The Independent in the UK has quickly jumped onto this bandwagon and has written a great article worth reading: http://www.independent.co.uk/news/business/news/the-demise-of-the-dollar-1798175.html

    Now the big question is, will the US dollar fail? Personally I don’t believe so but with pressure from around the world as a united front, it certainly can. But it is also important to note that months before the US invaded Iraq, Saddam dropped the dollar for oil. Roughly 1 month ago, Iran has done the same and coincidentally criticism on Iran has climaxed. I’m not sure if I can say this is a coincidence, but its worth noting.

    On a personal note, I have been short on the USD/CAD since about 1.28 and have made a hefty profit on my currency trading (I use QuestradeFX for my currency trading). All in all, the US dollar is going to get a lot worse before it gets any better. Enjoy trading everyone!

  • Gold Moves Up, Dollar Breaks Down

    Posted on September 30th, 2009 No comments

    Gold just recently broke the $1000 barrier once again, proving that it just isn’t comfortable under $1000. The $1000-$1003 range was the level of resistence I was looking to break in order to get bullish once again. In the opposite corner, the US dollar is breaking lower against most major currencies, especially the Canadian dollar.

    At this point, technicals have me very interested in the commodity markets, where I will slowly be taking positions once again.

  • Gold Target for Week of September 28th

    Posted on September 29th, 2009 No comments

    Sorry for the delay in this post. I caught some kind of bug that had me stuck in my bed for the past few days. None the less, I’m back and better!

    Direction: Neutral

    Okay, I hope everyone had a good ride with gold and followed my stops. If so, you should be on the sidelines waiting until gold makes up its mind. Right now we can either break up to $1025 or crumble into the $970 range. We might see some see-saw action until next week. Big events to consider will be the meetings with US and Iran, which should have significant impact on oil and dollar markets this Thursday. That being said, gold could follow suit depending on what the dollar decides to do. Keep your eyes open and keep trading!