Credit crisis intensified, as people in the eyes of the Harbor hedge - gold should have an opportunity to use this big step on the red. However, It is surprising that gold has failed to "shine golden light" and a few days in a row at 850 U.S. dollars / ounce under linger. In my view, the dollar rebounded against the current gold price inflation slowed down the formation of bad, but in the future if the financial crisis intensified, with the function of hedge gold prices will continue to rise.
http://blog.360.yahoo.com/blog-EsNniM88aKdfK_Qr05Lm8w--?cq=1&p=17
Dollar up, gold bad inflation
In general, the weak U.S. economy, prospects, the dollar will remain weak, but the dollar falling in the 6-year bear market after the financial crisis, but into a "currency hedge." The reason is that in a financial crisis, countries in the world to hold high the banner of interest rate cuts to ease the shortage of market liquidity and stimulate economic recovery. However, the Federal Reserve in the current interest rate level of 1.5 percent and under is not much room for interest rate cuts, while the European Central Bank, as well as other high interest currencies more room for interest rate cuts. Comparing the two, the dollar was well supported. Second, the credit crisis to the global proliferation, national economies have suffered a heavy blow in the stock market, and even money market funds and other traditional low-risk investment losses occur, investors prefer to hold cash. The U.S. downturn has made it more difficult to obtain or gold.
http://blog.360.yahoo.com/msarycat
Under normal circumstances, the market will be gold in the battle against inflation as a "weapon" and the devaluation of the currency notes of "alternative currency", but the U.S. dollar gold has lost one of the main driving force. With the bulk commodity markets and the sharp fall in a row, gold is also another important feature of the pale. International commodity markets since early July to start back, as at present, crude oil has been close to 71 U.S. dollars / barrel, more than 50% of the callback. Industrial products, agricultural products, such as dim prospects for the world economy triggered by the expected decrease in demand, have come down substantially. Financial crisis caused by the lack of liquidity, energy and food prices, the credit crunch in the short term inflationary pressures significantly reduced.