metals decoupling from dollar
posted on
Jan 24, 2009 09:01AM
SSO on the TSX, SSRI on the NASDAQ
this is from casey research. analysts see gold rallying despite strength in the us dollar:
What a day for the precious metals, as they all posted solid to spectacular gains. The usual suspects provided little in the way of impetus for the rally, as equities were mixed, the dollar was stronger vs. the euro, and oil leapt higher.
That gold did so extraordinarily well is suggestive that it may be finally decoupling from the US dollar. At the least, there is a clear flight to quality going on in the face of the deepening recession.
Kevin Kerr, editor of Global Commodities Alert grabbed the spirit of the day, commenting that, “Investors are starting to see that the yellow metal is one of the few havens for protection from what is an inevitable wave of inflation.”
In addition, Kerr said that, “Technically, gold is surging through some key levels, along with silver, and we are starting to see investors dip their toes back in the market … Gold may well lead commodities out of this [recent] widespread sell-off.”
We couldn’t agree more.
Peter Spina, of GoldSeek.com, is confidently looking forward to a further rally towards $1,000 an ounce, which is possible “with momentum and buying interest very strong this week.”
Spina added that, “Investors are looking to shelter their wealth and gold is one of the few choices they have in these unstable markets … Wealth preservation is 2009's theme.”