The US Dollar showed some weakness this week after the IMF (International Monetary Fund) had sold 200 tonnes of Gold to the Reserve Bank of India for 6.7 billion. This development along with the thought that other countries may follow suit and purchase additional reserves of Gold to fill their Gold reserve ratios. It was previously thought that the level that these countries wanted to buy the metal would be in the $1020.00 to $1030.00 area. This re-established the floor to approximately $1050.00. These markets are also responding to the play by play of our economic recovery. The relationship between the US Dollar and the Gold Market temporarily waned on Tuesday due to the purchase. We will be gaging the economic recovery on a variety of factors and the affect on the US Dollar. In this case, I still believe that in the long term, we shall see the US Dollar drift lower.......Full article here
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