The Dollar Stands Still While Gold Surges

Gold surged for the second day yesterday, after breaking its symmetrical triangle. After three months of consolidation, showing a converging pattern, this hot commodity soared higher touching a high of $997.70, throughout the session. While it is strange that Gold has increased so much over the last couple of days, without a major Dollar drop, Gold bugs are speculating that the Dollar is going to further devaluate in the near future. According to the Los Angeles Times, some analysts say gold may be benefiting not just from concern about the Dollar’s outlook but also from investor’s jitters about the future value of all paper currencies.

From a technical point of view Gold increased by another 1.39% yesterday, coming close to it psychological resistance level of $1000 per ounce.

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