Over the past two days, the USD has moved markedly lower. In fact, today's USD decline was the 5th largest since 1970 as indicated in the lower table. The lower chart also indicates that the USD has broken short-term support. For now, this should help precious metals but soon gold and silver will soar based on their own merits only.

Wall Street is trying to paint the picture that stability has returned to the markets as a result of Obama's new economic team. However, the decline in the DOW very late in trading shows that professional traders are not convinced of improved conditions and they sold off at the highs of the day. Simply printing more money to rescue bankrupt entities only serves to delay and worsen problems as well as attract more leeches.

Regards - VHF

-