The dollar is creeping back to the catastrophe it was under Bush. It's a sign from the market that many problems exist in the US economy. The weakening value comes from many current problems including slow growth, high spending, general belief in the market direction. Obama is in a tough position with the spending - it has to be done - but at the same time, there's nothing out there that suggests any great movement in the economy. It's a "more of the same" feeling.
Maybe the market is looking too often for miracle cures and the false growth numbers of the past, but still, there is nothing in view that suggests Obama has any grand plan with the direction of the economy. We all know it's flat, but people (and the market) want to see much more forward thinking. It's not even close to being there today.
Gold hit an 18-month high Wednesday as the dollar slid near one-year lows against the euro, sparking buying of the yellow metal as an alternative asset and helping lift silver and platinum to multi-month peaks.
Spot gold remained sharply higher at $1,017.65 an ounce into late New York dealings, compared with $1,005.90 on Tuesday. Wednesday's high of $1,020.50 an ounce was last reached in March 2008.
