Posted by treid4dou on 3rd of Jul 2008 at 07:57 am
Why rate hikes in ECB make Gold go higher....and rate hikes in
US ...to go down ???? Just a US dollar reaction
?????....Thought Gold would react similar to rate
hikes...irrespective of where they came from....interesting...
At this stage, ECB raising has the potential to cause dollar to
go lower, thus one could anticipate higher oil, gold, silver and
many other dollar denominated commodities. Some of the commodities
may not go up though since inflation will continue to be a
drag on economies and eventually demand will drop.
Question
Posted by treid4dou on 3rd of Jul 2008 at 07:57 am
Why rate hikes in ECB make Gold go higher....and rate hikes in US ...to go down ???? Just a US dollar reaction ?????....Thought Gold would react similar to rate hikes...irrespective of where they came from....interesting...
ECB
Posted by rvk1958 on 3rd of Jul 2008 at 07:59 am
At this stage, ECB raising has the potential to cause dollar to go lower, thus one could anticipate higher oil, gold, silver and many other dollar denominated commodities. Some of the commodities may not go up though since inflation will continue to be a drag on economies and eventually demand will drop.
TKS....so its just a reaction
Posted by treid4dou on 3rd of Jul 2008 at 08:06 am
TKS....so its just a reaction to a declining dollar....ok...So Europe via Trichet did what the Germans wanted...rather than the other EU countries...