U.S. Dollar Hammered as Gold Prices Look for a New Record
The U.S. dollar is being hammered today in forex trading on the currency market today as gold prices reach for a new nominal high. Silver prices are also heading for a nominal record.
Greenback is down in currency trading against all major currencies. The euro, yen and pound are all up against the dollar, as is the Aussie. With forex traders worried about inflation, gold is in demand. Because gold is priced in dollars, the two often move inversely to each other. As gold strengthens, the greenback weakens.
Inflation also has other investors focusing on assets beyond low-yielding dollars. Investors are shrugging off $100 oil today to send the U.S. stock market higher. This is happening because the labor market showed improvement in February, and investors are taking heart, in spite of Ben Bernanke‘s dovish economic tone yesterday. Investors and forex traders alike are trying to find higher yields — yields the U.S. dollar just can’t provide right now.
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