Precious Metals Rise on USD's Fall
Source: International Business Times, Scott Rubin (1/12/11)
"Gold, silver climb as USD hits fresh session lows."
The PowerShares DB US Dollar Index Bullish ETF, which tracks the performance of the greenback versus a basket of foreign currencies, has lost 0.75% to $23.09 and is sitting at its lows of the day.
The trading activity today is interesting in that the gold and silver markets are suggesting that investors are buying equities on expectations for global growth as opposed to fears about inflation. This despite widespread inflation reports filtering in from around the globe.
Industrial metals, agriculture, and energy are all outperforming precious metals by a very wide margin. Considering the Dollar weakness, it is rather surprising to not see a much bigger push in gold and silver.