wallstreet1928
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Re: Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders
Gold Higher With The U.S. Dollar. Whats Going On? (NYSE:GLD), (NYSE:SPY)
By Nicholas Santiago on March 15th, 2010 3:38pm Eastern Time
Gold and silver are both trading higher during today's trading session. It is rare to see gold and silver trade higher when the U.S. Dollar index is strong on the day. There could be several reasons for today's action in gold and silver.
Many traders and investors view gold as a safe haven against all fiat currencies. As we all know gold has been the currency of choice since recorded history by most civilizations. Therefore, when the U.S. Dollar declines it is highly likely that we see gold, silver and most commodities rise. Since the March 2009 stock market lows gold has lead the market higher as the Federal Reserve Bank and the U.S. Treasury have tried endlessly to inflate this market back to health; to their credit it has worked so far. Tomorrow is the FOMC meeting when the Federal Reserve Bank makes it's statement about the economy and the Fed funds rate. Currently the Fed funds rate is at zero percent and the market is not anticipating a rate hike in the near future. Therefore, today gold traders seem to be positioning themselves ahead tomorrow's Fed meeting.
Recently gold has made a high in December 2009. Since that time gold has made lower highs on the daily chart. This type of action is telling us that gold could be very volatile in 2010 and may see lower prices throughout the year. However, in the long term as long as central banks print money and the major nations continue using a fiat money supply system it prudent to hold some physical gold for the long term.
Gold can be traded by using the SPDR Gold Trust ETF (NYSE:GLD). Often silver will trade with gold and it historically looks cheap compared to gold. Trader can use the iShares Silver Trust ETF (NYSE:SLV).
http://www.inthemoneystocks.com/n_rant_and_rave_blog.php
Gold Higher With The U.S. Dollar. Whats Going On? (NYSE:GLD), (NYSE:SPY)
By Nicholas Santiago on March 15th, 2010 3:38pm Eastern Time
Gold and silver are both trading higher during today's trading session. It is rare to see gold and silver trade higher when the U.S. Dollar index is strong on the day. There could be several reasons for today's action in gold and silver.
Many traders and investors view gold as a safe haven against all fiat currencies. As we all know gold has been the currency of choice since recorded history by most civilizations. Therefore, when the U.S. Dollar declines it is highly likely that we see gold, silver and most commodities rise. Since the March 2009 stock market lows gold has lead the market higher as the Federal Reserve Bank and the U.S. Treasury have tried endlessly to inflate this market back to health; to their credit it has worked so far. Tomorrow is the FOMC meeting when the Federal Reserve Bank makes it's statement about the economy and the Fed funds rate. Currently the Fed funds rate is at zero percent and the market is not anticipating a rate hike in the near future. Therefore, today gold traders seem to be positioning themselves ahead tomorrow's Fed meeting.
Recently gold has made a high in December 2009. Since that time gold has made lower highs on the daily chart. This type of action is telling us that gold could be very volatile in 2010 and may see lower prices throughout the year. However, in the long term as long as central banks print money and the major nations continue using a fiat money supply system it prudent to hold some physical gold for the long term.
Gold can be traded by using the SPDR Gold Trust ETF (NYSE:GLD). Often silver will trade with gold and it historically looks cheap compared to gold. Trader can use the iShares Silver Trust ETF (NYSE:SLV).
http://www.inthemoneystocks.com/n_rant_and_rave_blog.php
