Tuesday, March 16, 2010
The U.S. Dollar is trading lower ahead of this afternoon’s FOMC policy meeting. This weakness is helping to boost April Gold prices overnight. The recent break in gold stopped short
of the late February bottom at $1088.50 to maintain the uptrend.
Buyers came in on Monday to support prices after the hard sell-off in the British Pound triggered concerns that the currency would collapse over concerns about its ability to service
its debt and a possible cut in its credit rating. As long as this is an issue, look for buyers to support gold as they debate whether hard assets are a better investment than paper currencies.
Stock indices are trading higher this morning boosted by demand for higher yielding assets. On Monday, the market turned around late in the session, proving once again that investors
like to buy dips. As long as stocks continue to provide a positive return, look for investors to maintain their upside bias. At this time there aren’t many investments around offering a high yield
which should keep investors interested in the …