Dollar Up - Gold Down (for now)
With Bernanke's latest comments about inflation fears the good ole US$ has been gaining ground. Apparently, some analysts think that this means that the latest gold rally is dead. Others feel that this is temporary and that gold may yet benefit from inflation worries and the potential for future stock-market weakness.
Compared to oil, gold has not kept up the pace so far this year. If you are betting on oil vs. gold, oil would be the winner, for now.
But I am a long-term investor, looking for opportunities now to buy low so I can sell high later on down the road. For me this means a great opportunity to pick up some cheap shares of junior gold and silver mining stocks, because they will be the ones that benefit the most when (not if) the dollar declines and gold prices rise again.
What does the rest of Fooldom think?