Latest on US Dollar and Gold Trends
A new report in the UK's Independent newspaper says China, Russia, Japan, France and the Gulf states plan to stop using the dollar in oil trading and instead, replace it with an oil pricing mechanism that uses a basket of currencies AND gold. The newspaper claims these countries have been in ongoing secret talks regarding the matter.
Cavuto - The Dollar Ain't the Deal!
Glenn Beck - End of the Almighty Dollar?
US Dollar Weekly - click image for sharper chart
Extract below from Forbes - Gold sets new record; analysts expect more as US dollar falters
"Gold hit fresh highs on Tuesday as it continued to take its cues from a weak U.S. dollar. The greenback tumbled as uncertainty over its global strength was triggered by a report from the U.K. alleging that certain Gulf states secretly met with Russia, China, Japan and France to discuss replacing the dollar with a basket of currencies to trade crude oil. The basket would include gold in addition to the euro, Chinese yuan, Japanese yen and a new currency for nations in the Gulf Cooperation Council, according an article The Independent that was later denied by the Gulf States."
Excerpt below from this must read Safehaven link: Gold Breakout Alert - Powerful Uptrend - Target and Trajectory
"The key point to grasp here is that this rally is going to be BIG. The major consolidation in gold has been going on for about 19 months now, so gold has built up a tremendous amount of energy for its next move. This is the 5th attempt to break above the March 2008 high, the other 4 attempts, after March 2008 itself, occurring in July 2008, February and May of this year, and the attempt now in progress. Thus it should be quite clear that once gold breaks clear above the MAJOR RESISTANCE at this level, it is not going to settle for some pitiful $50 - $100 gain - it is going up at least $300 and very possibly of the order of $500 - $600 and this gain should be achieved in short order over the space of three to six months or so. Silver will go wild when this happens."
Just a beautiful chart! - click to enlarge
Gold Weekly - click image for sharper chart
Last, but certainly not least, I highly encourage you read my very informative post on the history and likely future of our US Dollar - Dollar: Faltering Foundation of US Economic Strength