Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Wednesday, December 10, 2008

Gold Rises on Weak USD Index

12 months and 3 months USD Index charts: The dollar index rally past 88 on 20th November but has since dropped to 85 today. Looks like we're going to see USD weakening (against a basket of related currencies strengthening) in next few months.. Let's see how the Ringgit and AUD move in the next few days..

Dollar weakness typically boosts dollar-denominated commodities such as gold.
Spot gold on a 5 days chart indicate a rise from $760 to $815 (7.2%) in just over 3 days.

CRB Reuters dropped from a high of 476 on 3rd July to a low of 215 on 10th December. It rose to 221 (1.6%) on 11th December. We will see a rally in Crude Oil..

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