Euro, Gold & Oil all took hits to the downside to-day. They all look technically weak. There seems IMHO to be a lot of folks betting against the US$ for twisted political reasons. Their bets are all coming unstuck. The Iraqi elections will be a very positive driver for lower oil prices as the Iraqis have the potential to pump up to 6 million barrels per day (up from the current 1.5-2 mbpd) with substantial investment over the next ten years. The terrorists have been reduced to blowing up schools/polling stations and even the Democrats/Eurocrats who dispise Bush look foolish for supporting the Saddamites.
U.S. economy is booming and the deficit is shrinking so look for the US$ to base/get stronger in the coming weeks.
The XAU took another hit and has about 10% downside to reach its long term uptrentrend line. Am waiting for a lot of Auusie specs to continue to blow out on the downside during February. Saving my pennies for the bargains during the Ides of March.
