--Johnny Drama (Entourage)
It's getting close to fish-or-cut-bait time for the US dollar index (USD). The USD has been in a decade long downtrend. (offline, compare the 10 yr USD chart to a chart of gold over the same time period)
On the back of QE2, the USD is once again probing the lows for the move. Near term support resides right around here at about 75ish. Below that rests the 2008 lows at 71-72.
If that support gives way, then it'll be a brave new world...
position in gold
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
1 comment:
The fact that central banks are reducing US dollar holdings and increasing holdings of other currencies, including gold, is simply a matter of preserving the value of their reserves in the face of developments influencing the value of the US dollar, such as the burgeoning US dollar carry trade.
~Ron Hera
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