Bernanke’s big analysis begins: instance to go towering on dollar?

October 03rd, 2007 | Category: Stocks

Gold dropped shut to $20 an ounce in yesterday’s trading as press reports increasingly circulated that the U.S. dollar/Euro exchange rate is unsustainable.

We blogged recently that Fed Chairman Bernanke has to tryout whether gold’s recent price appreciation has to do with concerns by global inflation or investors seeking a safe haven as the dollar continued to weaken versus Euro.

While yesterday’s

appreciation versus the Euro was modest, it was a slight shift in direction and will likely get the support of both European and U.S. treasury secretaries. that is one trade I’d consider — going expanded dollar and short the Euro.

Original post by Eric Buscemi

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