Strong dollar should continue until the Treasury auctions end:
2-Year NOTE Tuesday, April 27, 2010 5-Year NOTE Wednesday, April 28, 2010 7-Year NOTE Thursday, April 29, 2010 4-Week BILL Tuesday, April 27, 2010 13-Week BILL Monday, May 03, 2010 26-Week BILL Monday, May 03, 2010
Also, there was the preliminary vote in the House to overwhelmingly impose sanctions on iran, including gasoline. Only way to enforce is with a naval blockade. They will put a real vote later at a convenient time, but you are basically seeing further dollar strength as a result, which hurts PMs.
Respectfully, I disagree. Dollar has a major influence in PM movement. Take a look at 5 year charts. Picking Dec 09 is strange because it was the turning point in a much larger trend line - itll take a bit to catch up. For example: ~Dec09: gold hit max, silver hit max, BDI maxed, dollar hit min, oil topped out, etc etc. The notable exceptions were Platinum & palladium, which only paused briefly in Dec09, rather than top. This is a largely because there arent large hedges on Pt & Pd, while Au and Ag have lots of hedges. In a way, Pt and Pd have become better indicators of true value of the dollar than gold. Relating back to PAL, we see dollar influence, as well as the very nice Pd influence, making PAL a strong performer.