The dollar price of gold, now brushing up against the $333 level, has jumped nearly $10 in the last two trading sessions to its highest level since 1997. The move began yesterday around 11:00 a.m., and intensified after the Fed minutes from the FOMC's November 6 meeting were released at 2:00 p.m. The dollar also continued its weakening trend against G6 currencies.
We think there are several catalysts behind the gold move and that gold should retain an upward bias going forward. This also means that commodities will retain an upward bias and that the dollar should continue to glide down against foreign exchange.