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The inevitability of further asset purchases from the Fed, BoE, ECB and BoJ enhance the case for gold and silver. ...

YENs TRADE-WEIGHTED INDEX http://chart.ly/4dt85t the chart in the link is Deutsche Banks JPY Traded-Weighted Index, showing the currency testing the highs of January 2009. Despite the similarity of the price pattern with Jan 2009, there are differences. GLOBAL BOND YIELDS TODAY are dragged by a...

HOW WILL USD FARE DURING DEFLATION? It depends on what is the reason to deflation and whether it is accompanied by substantial deleveraging in the markets as was the case in 2008-9. The last time we had GROWTH-DRIVEN deflationary fears (2002-3), the US dollar was under severe pressure. But that...

Since October 2008 gold has enjoyed a steady if somewhat choppy rise higher to new all-time highs against a range of currencies including the euro and the pound. The reasons for this rise are pretty well documented given the background of money printing by central banks and risks of sovereign...

CAD ATTEMPTS RESILIENCY in the face of softer than expected Canadian June annual CPI at 1.0% from Mays 1.4%, with annual core slipping to 1.7% from 1.8%. Not enough risk aversion is occurring for USDCAD to break above the Jul 20 trend line resistance of 1.0450 just as yesterdays 1 June trend lien...

Since the October 2008 lows of $682.50 the yellow metal has recovered its lustre initially moving up in conjunction with equity markets, as well as on the back of a weaker US dollar. This move higher also coincided with the move higher in the single European currency as markets stabilised on the...

Mirror, mirror on the wall who's the ugliest of them all could have been the question directed at the pound and the Euro over the past 18 months, as they battled it out for the dubious distinction for the crown of least wanted currency in their own battle of the uglies. It now appears that...

IRAN CENTRAL BANK says it has begun the first phase of sales of about 45 billion euros of its reserves for dollars, according to the Iranian state-run Jaam-e-Jam newspaper reported. 15 billion euros will be sold in the first stage of the transactions. But central banks from Brazil, China and...

USD 3-MONTH LIBOR REACHES 0.48%, doubling the levels from the November lows, as it reflects the escalating cost of USD-funding for US and non-US banks. Lack of trust among banks as well as liquidity difficulties are the main culprit. Fed has responded by providing USD-funding through FX swaps with...

ECB Intervention is inevitable, Gold set to catch down with other commodities & Aussie to way down under...

This weekends announcement of a 110bn aid package over the next 3 years for Greece has been a classic case of buy the rumour sell the fact as the markets doubt Greeces will to follow through on the severe austerity measures required to save the country from bankruptcy. Greek public sector...

Bank of Canada Governor Carney to speak on Wednesday and attention will be on whether he will step up the central banks concerns about the escalating loonie. Last weeks release of Feb CPI showed a 2.1% annual rise in core CPI, surpassing the BoCs 2.0% ceiling. CPI would still be 1.9% after...

Watch Ashrafs conversation with CNBCs Maria Bartiromo http://bit.ly/bObAd6 on the US dollar, the rate hike cycle (discount vs. fed funds), euros inability to break $1.38 and central banks divergent cycles. ......

Today's RUMOURS about CHINA BUYING buying the remaining 200 bln tonne of gold have yet to confirmed, but they were reportedly effective in supporting the metal against USD considering the sharp rally in USD and JPY. A Chinese website (China Daily) denied the news while a Russian publication...

It has been a great decade for investors in commodities, but for those sticking to a traditional buy and hold equity strategy, good returns have been harder to find. #20100105-c1.gif# In the table above you can see that most of the major indices have performed poorly over the last 10 years....

Watch Ashraf's Gold take on CNBC earlier today http://bit.ly/7YvAzz as well his analysis on Central banks and risk appetite http://bit.ly/6uMgZH ......

Yen strength still eclipsing USD rebounds during risk aversion. while gold's ascent is better gauged against currencies other than the US dollar....

This months rapid appreciation of a metal, that to all intents and purposes, has no real benefits other than a store of value, has been the major story so far this week, in the lead up to the year end. So far this month Gold is up over 10%, and since September its up over 20% with no sign of...

ANOTHER FRIDAY, ANOTHER YEN DAY. Business TV may be busy talking about the rebounding US dollar, but once again, the yen remains the best performer during these days of risk-aversion (falling stocks) just as was the case in the last 3 Fridays. The case for continued yen strength remains based...

UK and US stock markets have been exhibiting some unusual behaviour this week with their benchmark indices making new highs for 2009. These moves appear to stem from the continuing mixed messages coming out of the US with respect to the strength of the US dollar and its on-going stimulus...

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This week is going to be an important one for the pound and stock markets in general. On Tuesday the Reserve Bank of Australia raised interest rates 25 basis points to 3.5% as it looked to scale back its stimulus plan over the coming months. The key question now is who will be next, what...

The resurgence in the US dollar over the past few days has seen the prices of both Gold and Oil slide back towards their break-out levels. The US dollar index has posted 4 successive up days for the first time since April this year and is approaching its long term resistance at its 50 day MA...

Bank of Canada Governor Carney expresses more concern with the strong loonie when he said persistent currency strength remains the major downside risk and that FX intervention is always an option. But any knee-jerk selling in CAD was quickly reversed when Carney reminded that the central banks...

Oil prices soar on escalating worries about the USD and reserve diversification from central banks scaling up EUR and JPY. The breakout above $73 faces the $75 as the sole resistance, which augurs well for prolonged CAD gains ahead. See our LATEST HOTCHART on EURCAD http://bit.ly/4DckdM GBPUSD...

Looking at Gold in various currencies continues to help clarify FX secular strength, while it is time to revisit the Shanghai Composite's monthly chart. ...

All eyes on the ECBs 2nd 12-month refinancing operation, with the allotted amount seen in the 90-120 bln range, which is far less than the record 442 bln lent at the central banks operation in June. Flushed with unlimited liquidity at 1.0%, banks are expected to have less of a need for funds at...

Medium term trends indicate the US yield curve is ready for a major break out at the expense of the USD, while LIBOR trends offer more downside room for GBP. ...

No major explanation to the dollars rebound against EUR, GBP, AUD, NZD despite stocks persistent gains. USDCAD is the exception after BoC Governor reiterated the central banks upward revision in GDP and inflation. Although Carney did say hes watching CAD closely, CAD accelerated its from the...

The much-anticipated dollar rebound will rather emerge on "Green Shoots" fatigue rathern misplaced views of a US economic recovery preceding the rest of the world. ...