International Bullion–“Zen International”– (Dollar On Last Legs?)...
(NewDesignWorld Press Release Center) -- September 19th, 2009, London, UK- “Zen International”: US Dollar’s slow grind downwards may yet provide surprises.
“Zen International” the Asian-based investment broker believes that the US dollar’s drift lower will continue as long as equities and commodities remain buoyant.
Mild increases in consumer sentiment and some less-bad economic data has encouraged investors to sell the dollar in favor of higher-yielding assets including equities.
The dollar index (DXY) which tracks the dollar against the currencies of six major US trading partners has dropped below 77 which many commentators believe is a signal that investor risk appetite has returned for the longer term. However, “Zen International” believes this is indicative of a flight from a currency that is fundamentally flawed because the price of gold remains robust around the $1000 level with buyers offering strong support in the $990 region.
Equities continue to trade sideways indicating that the current rally has lost momentum and this may see gold soar in the event of a slide on the key global indices.
Still, “Zen International” sources suggest that the dollar may have another rally if the expected sell-off in equities is sharp. They don’t, however, expect the DXY to break resistance at or around the 78 level.
The firm re-affirmed its bullishness on precious metals in general and in gold in particular and urged clients to continue their acquisition of the metal on dips in prices.
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