XAU USD and the fear factor!


Scared to death of these levels - maybe its time to sit out and wait for a downside break. And a big thank you to Trichet for helping to pummel my beloved dollar even more!

The Dollar reached a 14 month low against all majors after continuous signs of global recovery increase investors\' appetite for risk. Adding to that was the U.S. Initial Jobless Claims that decreased to 10-Month Low of 521,000 and pushed the investors to higher yielding assets. NASDAQ and Dow Jones rose by 0.64% and 0.63% respectively. Crude oil jumped by 3%, closing at 71.69$ a barrel on the back of the Dollar\'s weakness and despite an increase in oil and gas inventories. Gold (XAU) reached to a new record high of 1060$ but closed lower at 1055$ an ounce. Today, Trade Balance is expected to slightly decrease from -32.0B to -32.8B.