What a joke, you call yourself commodities trader and you dont have a clue how interest rates impact commodity prices.
Why dont you change your moniker to yahoo-posting-imbecile. Dont worry you would not be alone we could make your id unique by giving you the next available numbered id like "yahoo-posting-imbecile-326,556."
Capital tends to flow to higher interest rate economies (higher return on invested capital). If the ECB shows restraint toward accomodative monetary policy and doesn't lower interest rates by as much as expected, it will result in strength in the Euro. Trichet's actions are bearish for the USD.
Gold tends to trade in the direction of the Euro -- chart GLD vs. FXE and you will see very similar patterns.
higher rate cuts abroad give an apparent strength to the dollar.......there will be fewer and fewer foreign rate cuts gradually lowering the dollar imho.....the EU has repeatedly said it does NOT want hyperinflation that will scourge the usa....