us$/oil/gold breakdown

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    Spot gold is now down US$1.30 at $412.40. US$ is on a very bullish run. A number of very political factors are now at work. Condi Rice is "doing Europe" and the Middle East (suspect she might become/has a shot at becoming the first woman president of the USA). The political equation after the Iraqi elections has shifted very heavily in favor of current U.S. policy US$ and this has crushed the "war premium" in both gold and oil.

    Oil is currently being overproduced and will be interesting to see how far it falls. Almost down a dollar at the moment. Gold is barely a dollar above its long term trend line at US$411.00 IF this gives expect a major sell-off in both physical gold and equities. This is TOXIC for Aussie gold stocks.
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