westwest888

Two Market Indicators: Gold and Baltic Dry Index

Gold hasn't reached a high in dollars but has reached a high in euros and pounds. The dollar is temporarily strong because European banks have a high demand for dollars to cover their losses in dollar denominated instruments. Specifically, AIG losses, Lehman losses, ARS, ABS, MBS, CMBS securities. When the losses are covered, the dollar goes back to where it was.

You should read Brad Setser at CFR before you post, bro.