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<p>[QUOTE=&quot;Yankee, post: 704940, member: 18618&quot;]<b>Gold</b></p><p>The dollar came under sustained pressure as the Independent of London’s Robert Fisk broke a story stating that a group of Arab countries, Russia, France, Japan and China and others were in secret discussions to use a basket of currencies and gold to replace the dollar in order to trade oil. Although some officials have denied this report, the fact that it is mentioned at all raises the question as to how much longer the dollar will remain the global reserve currency. According to Chinese banking sources, the transitional currency in the move away from dollars, may well be gold. </p><p>Gold surged to $1,021/oz on the news of this increasing threat to the petrodollar. The unexpected move by the Australian central bank to increase interest rates may have also pressurised the dollar. At some stage central banks will have to start withdrawing the unprecedented monetary stimulus of recent months and years. A rising interest rate environment from the unprecedented historic low rates we have now is bullish for gold as it was in the rising interest rate environment of the 1970s. Gold has risen through resistance at $1,020/oz in recent minutes to as high as $1,025/oz and looks set to challenge the record (nominal) high of $1,033/oz. A close above the record high should set us up for the anticipated rally to $1,200/oz.[/QUOTE]</p><p><br /></p>

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