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Tuesday, 20 Oct 2009
Gold on the Rise
Gold rose to hover just below record highs as the dollar extended losses to a fresh 14- month low against a basket of currencies, with investors taking more risks on growing optimism about the global economy.
A correlation exists between the rise of the price of Gold and the drop in price of the U.S. Dollar, especially against the EUR. The weakness of the Dollar against some of its major currency pairs is mirrored by a rapid increase in the price of Gold. The gold is currently traded at $1066.20 an ounce, up from around $1055 overnight.
As later today, it would be a wise move to continue trading very big positions in the gold. This strategy is likely to enable you to make big profits going into Wednesday's trading.
