PATIENCE >>>>>>>Gold prices are consolidating.After hitting new highs in 2008, gold prices appear to be rangebound in the $890-$950 range.
Gold is still a buy on declines!!!!!
The US Dollar continues to remain under pressure and Inflation concerns are growing.
Oil prices meanwhile are at new highs, even as the EURO/DOLLAR nears the 1.60 mark.
Carry trade currencies such as the Swiss Franc and the Japanese Yen, have risen sharply over the same period, for reasons of carry trade unwinding, and also flight to safety.
Emerging markets shrugged off concerns of a slowing US economy through 2007, but rapidly rising inflation appears to have put the brakes on such outperformance.
Rising fuel and food prices are forcing Central Bankers in the region to resort to tightening liquidity, maybe even allowing local currency appreciation or raising interest rates.
As a result, equities of emerging markets have corrected sharply in 2008, despite their outperformace vis a vis developed markets through 2007.
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