|
Gold hit a new record on Monday – soaring above $1100 an ounce. The driving force is a weak greenback. Coming out of the G20 meeting on Monday, the US dollar weakened after confirming speculations that interest rates will remain low for the foreseeable future, leaving little incentive to buy the currency. As a hedge against the dollar, gold soared to new heights. The question is, is this latest surge a temporary Dollar-driven phenomenon? It doesn’t look like it... European traders noted that gold's strength in currencies other than the dollar suggested these gains could be resilient. An article from Reuters on Monday said that: "Gold is unstoppable," said Michael Kempinski, a senior trader with Commerzbank. "The forex market helps, and technically it seems pretty good. And as we know, funds like to take more in on the highs to push (prices) further." Given the series of record highs in the wake of India’s central bank purchasing 200 tonnes of gold last week, and the corresponding slip in the US dollar, now is the time to diversify your portfolio and buy gold (if you haven’t already...). Yours in profits,
Roger Gaines
|
