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Gold and the dollar: bottoms up

Source: Financial Times, 20th April 2011

As of this week, one troy ounce of gold will cost you more than $1,500. Meanwhile, the US dollar, on a trade-weighted basis, is back to a post-crisis low. These facts are not coincidental, and reflect well-embedded trading trends that could persist for a while longer. They do not, however, cohere with events in the real economy.



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