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September 04, 2009 Out of the Dollar into Gold |
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The dollar was on the defensive Friday after holding its value relatively well since Wednesday's upside explosion in gold prices. Let's notice that the Dollar Index (DXY) is pressing on its key Aug-Sept support line near 78.00, which is an ominous sign heading into a three-day weekend. The fact that gold is holding nearly all its three-day gains suggests strongly that money is moving into the precious metal and now more obviously and aggressively is moving out of the dollar. Good for holders of the SPDR Gold Shares (NYSE: GLD), and negative for the PowerShares DB US Dollar Bull ETF (UUP). The fact that the equity market is acting well also has taken some impetus away from buying dollars.
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Mike Paulenoff Mike Paulenoff is author of the MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions. Sign up for a free 15-day trial to Mikes ETF Trading Diary today. Copyright © 2007-2009 Mike Paulenoff Image rendition and html coding Copyright © 2000-2009 SafeHaven.com ADVERTISEMENTS
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