224834 Resource 133514 120646 120646 1233161503400 1233161587626 Controlled Gold Falls Back Below $900 an Ounce

When will the gold/dollar relationship go back to "normal"?

<br /><font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">Over the past few months, we have seen something very interesting in the <span style="font-weight: bold;">relationship between gold prices and the U.S. dollar in forex trading</span>: They no longer move opposite to each other.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">This is because in this time of economic turmoil, the <a title="U.S. dollar, gold prices, spread betting, spread bets, gold futures, greenback, forex trading, economic stimulus" target="_blank" href="http://forex.gftforex.com/public/item/224822">dollar</a>, like gold, is being viewed as a safe haven. Now<span style="font-weight: bold;"> gold and the greenback are moving generally in the same direction</span>.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">But how long will this last?</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">As the <span style="font-weight: bold;">U.S. economic stimulus</span> moves through Congress, things could change. The influx of greenbacks could reduce the value of the <span style="font-weight: bold;">U.S. dollar in forex trading</span>, while at the same time increasing demand for a <a title="U.S. dollar, gold prices, spread betting, spread bets, gold futures, greenback, forex trading, economic stimulus" target="_blank" href="http://www.banks.com/blogs/investing/2009/01/27/investing-to-beat-inflation/">hedge for inflation</a> -- gold.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">Even though deflation is the main concern right now (another <a title="U.S. dollar, gold prices, spread betting, spread bets, gold futures, greenback, forex trading, economic stimulus" target="_blank" href="http://www.babypips.com/blogs/currency_currents/bailout_fatigue_gold_anyone.html">reason gold demand may be lukewarm</a>), at some point in the relatively near future the issue will switch to<span style="font-weight: bold;"> inflation</span>. And gold may see a rebound then.</span></font><br /><br /> 9 application/xml false economic stimulus forex trading gold futures gold prices greenback spread bets spread betting U.S. dollar Gold and the inflation hedge http://www.bloomberg.com/apps/news?pid=20601012&sid=a_hWjCyOy3vs&refer=commodities Futures trading with commodities http://www.gftfutures.com Spread betting on commodities http://www.gftuk.com/land/index.asp?aid=53 <script type="text/javascript" src="http://tools.tipd.com/evbs.js"></script> <script type="text/javascript"> evb_url ='http://blog.gftuk.com/public/item/224834'; evb_big(evb_url); </script> <!--SocioFluid--><script type="text/javascript" src="http://www.sociofluid.com/sf.php?widget=124320-000103040b0d0e1011"></script><noscript><a href="http://www.sociofluid.com/">SocioFluid</a></noscript><!--SocioFluid--> Mozilla/5.0 (Macintosh; U; Intel Mac OS X 10.5; en-US; rv:1.9.0.5) Gecko/2008120121 Firefox/3.0.5 127.0.0.1 127.0.0.1 mmarquit 66.182.66.2 false true false false true 133514 blog blogsite/GFTUK/web