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"Piling on" the dollar

Another "thumbs down" for the dollar was registered today, when Mauritania joined India in picking up some gold for their central bank, according to the Bloomberg TV news crawl. So far, I haven't been able to unearth details as to quantity, price paid, or what percentage of their holdings are in gold.

In other gold-related news, yesterday's FT had an article pointing out that production is in a secular decline. Although a bounce in the dollar would cause a minor correction in gold's price, it appears that longer term trend is bullish. Fwiw, I'd stay away from the South African miners, except as possible short term trades, as they're notoriously high cost producers, due to the extreme depth of their mines. Additionally, the electrical grid there is very fragile, and power-outages occur fairly regularly, which causes mine shutdowns.