Gold is trading at $1185 per ounce and rising as central banks and hedge funds around the world seems to be in a hurry to buy as much as they can. It might be the beginning of “Great Gold Rush of 2009″.
While people in India and other places are buying gold bars as per their capacity, majority of trading is happening in “paper metals”. Paper metals are any instruments that are not physically a metal but are options, future contracts, exchange traded funds. most popular form of paper metals are metal “accounts” with hedge funds and investment companies that hold Gold or Silver for their clients. 
The outlook is quite scary as it indicates a major change in investor confidence on dollar and other paper currencies. currencies no longer backed by Gold or other precious metals as they used to be few decades earlier.
In my humble opinion, this trend of increase in gold prices and decline in dollar value is indicative of market’s intent to embrace a new global currency fully backed by Gold/silver or other real physical assets.
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by R. MAK. on November 23, 2009 · 0 comments
in Business, Currency Trade, Economic Conditions, Forex Market, Forex News, Forex trading, News, Trading, currency, economy, gold prices
On Monday the euro has shown some advancement, hovering near the $1.50 level in New York trading as demand for the greenback has been hurt by the comments from a Federal Reserve official.
Greenback’s gains reversed
The remarks helped in encouraging a broad rally in global stocks, oil, gold and higher-yielding currencies that reversed the greenback’s gains from late last week.
Position of Major Currencies
In New York on Monday morning, , according to EBS via CQG the euro was at $1.4988 from $1.4851 late Friday. It has been noted that the dollar was at Y88.80 from Y89.00, whereas the euro was at Y132.97 from Y132.26. The U.K. pound was at the position of $1.6621 from $1.6491. The dollar was at CHF1.0089 from CHF1.0183.
The Dollar Index
The Dollar Index, was at 75.024 from 75.647. This index tracks the greenback against a trade-weighted basket of six currencies.
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