Dear Friends,

Just a quick note to inform you all that the Broad Dollar Index, which in my view is a better overall view of the Dollar’s valuation in the global economy than the US Dollar Index, made a brand new 12 year low today.

Meanwhile, that much anticipated breach of major support in the Dollar Index that I mentioned in the chart sent earlier this afternoon occurred in this evening’s session in Asia. The DX just set a record low dropping to 74.40.

Between the breakdown in the DX and the decade-plus low in the Broad Dollar Index, the result is that April Comex gold just knifed through the contract high at $958.40, setting a new all time high for a front month gold futures contract. It sure does seem like someone smells blood in the water in the gold market and is going to try to strong arm it higher. We will see if COT is up to the task of spending more ammunition in their hopeless quest to contain the metal’s inexorable long term march higher. Maybe some of that crowd should have checked in first with Kohn before they wasted so much of their time and money today.