Flash Gage: Dollar Sinks – Gold Rises

Flash Gage - News Headlines that Impact precious metals as they happen.

The U S Dollar just broke thru the next key level of support at 91.01 and now setting a new three-year low.

The price of gold reacting to such a move trading up over $ 17.00 on the day.

Next level of support in the Dollar is not until the 90.34 level. FX traders expect a pause at these levels as some take on a long position in the Dollar thinking it is oversold. Many traders believe that type of strategy is like catching g a falling knife.

“Hard to look a roaring freight train in the eye when you sit in the middle of the track,” said one FX Trader, referring to the momentum of a continuous falling U S dollar.

At the same time the Euro is trading at a new high of 1.2185 and the Sterling is also on its highs of today at 1.3736.

Have a wonderful weekend.

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