Gold ended sharply lower in overnight trade after we saw the 840 supports being taken out, triggering further technical sales to the 820s. Gold sales spilled over into the Asian hours as gold reached a low of just above the 803 as longs rushed to exit the gold trade.
The dollar extends its rally against a basket of currencies as the dollar rose to a 5.5 month high against the euro. Lower crude oil prices and weakening prospects in Europe and Asia Pacific provided a boost for the dollar as the economic slowdown which began in the U.S showed signs that is was spreading worldwide. A sustained dollar rally would hold bullish implications for stocks by attracting foreign investment in U.S. companies.
The dollar index, which measures the dollar against a basket of foreign currencies, has broken out of a trading range between 71 and 74.
In view of such build up, if this continues, gold could well slip further and dollar strengthing, thus making crude oil prices declined further, boosting U.S. stocks. We may be witnessing a double bottom for major indices.
The dollar extends its rally against a basket of currencies as the dollar rose to a 5.5 month high against the euro. Lower crude oil prices and weakening prospects in Europe and Asia Pacific provided a boost for the dollar as the economic slowdown which began in the U.S showed signs that is was spreading worldwide. A sustained dollar rally would hold bullish implications for stocks by attracting foreign investment in U.S. companies.
The dollar index, which measures the dollar against a basket of foreign currencies, has broken out of a trading range between 71 and 74.
In view of such build up, if this continues, gold could well slip further and dollar strengthing, thus making crude oil prices declined further, boosting U.S. stocks. We may be witnessing a double bottom for major indices.
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