Fxstreet.com (Buenos Aires) - Dollar continues extending loses across the board, as gold regain the $ 1000/oz, after a short correction to $ 982.00 support past Thursday. The commodity, that has been leading the way since early this week, has send both Australian and New Zealand dollars above the 61.8% Fibonacci retracement of each one monthly fall; this signals further appreciation for both currencies, as well as more weakness for greenback in the days to come.
The strong rise in gold is due, among other reasons to the unwillingness of certain governments to sell their gold. Some powerful states, such as China, are beginning to hoard gold and to become net sellers of U.S. Treasury securities, as not only governments but also institutions are losing faith on paper currencies, particularly the greenback. Also, fears about global inflation/deflation, and economic uncertainties are soaring gold, as a safe haven investment, at a time when the U.S. is printing trillions of dollars and pumped into the global economy.
As for now, gold rise is merely speculative; yet if the commodity manages not only to hold above $ 1000.0, but to break above previous historical high at $ 1030, expect further dollar losses against the rest of its rivals.