Dollar Drops Off the Cliff

February 28th, 2008

Warning: This is not a recommendation to buy, sell or hold any financial instrument.

Weeeeee!

74.09 on the USDX…

I love it when a plan comes together. Congratulations to all Cryptogon crash traders!

Now, don’t get decapitated.

Via: Market Watch:

Gold futures edged higher to trade near $964 an ounce Thursday, getting a boost from weakness in the U.S. dollar and surging crude-oil futures.

Gold for April delivery gained $2.30 at $963.30 an ounce on the New York Mercantile Exchange.

“The recent string of U.S. data has been appalling and this is putting significant pressure on the dollar and supporting gold,” said Mark O’Byrne, executive director at Gold and Silver Investments Ltd., in a note.

On Wednesday, gold rose $12.10, or 1.3%, to end at $961.0 an ounce. Earlier in that session, the contract hit a record $967.70 an ounce.

Weakness in the U.S. dollar boosted gold’s investment appeal. Gold, like many commodities, is denominated in dollars, and a lower U.S. currency makes it more affordable in other currencies.

On the currency markets Thursday, the dollar declined following U.S. economic data. The trade-weighted dollar index, which measures the greenback against a basket of six major currencies, fell 0.6% to 74.09.

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