Monday, 20 Jul 2009

Gold Rises to Over $953 an Ounce

The Dollar continued its freefall today, dropping against most of its major currency pairs. The USD plunged against the EUR to a 6 week low, with the pair now tradeing around the 1.4230 level. The greenback marked another significant drop vs. the Pound, depreciating by about 200 pips.

The Dollar dropped as stocks gained on speculations a gauge of the U.S economic outlook improved and CIT Group Inc. was said to be close to a $3 billion lifeline from bondholders.

In another aspect, today's most fertile investment seems to be gold. An ounce of gold has jumped almost $20 in value today, and is currently trading around $950. It appears that the weak Dollar has impacted metal prices, and if the bearish trend of the USD will extend, commodities prices might continue to rise.

As for tomorrow, the leading news event that should dominate the forex market looks to be Fed Chairmen Bernanke Testimony before the House Financial Services Committee, in Washington DC. Traders should follow Bernanke's speech with great caution, as it tends to have an immediate impact on the market, especially on Dollar's pairs.