Make no mistake about the U.S. dollar's recent strength; the long-term health of the world's reserve currency is still as precarious as it ever was despite the recent pick-me-ups it's received in foreign exchange markets.
- Why the U.S. Dollar Is Rising, and Why It's Going to Fall
- Currency Trading Today: Follow the FOMC to Profits
- Gold to Continue its Record Run as Central Banks Stock Up
Another FOMC meeting is in the books, and to no one's surprise they decided to stay the course. That will weaken the U.S. dollar, which definitely has its risks, but can deliver profits for currency traders who know how to play it.
Gold futures jumped as high as $11.30, or 1%, to $1,096.20 an ounce in morning trading on the New York Mercantile Exchange (NYMEX). And most analysts believe gold prices are bound to shoot even higher.
"Everything is pointing to the price of gold going higher," Mike Sander, an investment adviser at Seattle-based Sander Capital Advisors, wrote in an e-mailed report.