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Stronger U.S. Dollar Triggers Gold Liquidation

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Aug 11, 2009.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    Last week’s better than expected U.S. Jobs data continued to underpin the U.S. Dollar against most majors on Monday. The strength in the Dollar pressured December Gold and September Silver traders to take profits after the recent rally. The size of the break in gold could be an indication that some gold traders are willing to throw in the towel on the long side of gold as long as the U.S. economy continues to show strong signs of a recovery. With the Dollar strengthening and no signs of inflation, precious metals traders will have a hard time finding reasons to buy.

    Equity markets traded mostly lower in light trading activity. Valuation concerns may be keeping investors on the sidelines in the belief that stocks will have to come down from current levels to attract fresh money.

    Higher yields in Treasury investments may have pulled money away from the equities as the September Treasury Bonds and Notes both rose ahead of the start of this week’s $75 billion auction. Last week’s weakness caused yields to rise to levels which looked more attractive with less risk now that equity markets look like they are topping.


    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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