Gold 
”Dollar slides as US growth disappoints
The dollar has slid to its lowest level in three years against major currencies as a mixture of weaker-than-expected economic growth in the US, higher inflation and cheap money for longer from the Fed take their toll.
The sugar rush provided by the promise of zero interest rates for the foreseeable future is also starting to wear off. Equities are losing their bullish stance and gold and the Australian dollar have hit new highs.
The FTSE All-World Index is still up 0.5 per cent, just off its post-crisis high. But Wall Street has opened lower and European markets are giving up their early gains as US GDP growth fell from 3.1 per cent in the fourth quarter to 1.8 per cent in the first quarter.
A broad measure of inflation, the personal consumption expenditures price index, rose to 3.8 per cent, its highest in almost three years. The Fed’s preferred core inflation measure was a more modest 1.5 per cent, but still the highest since the end of 2009.”
”Dollar weakness is the overwhelming result of Ben Bernanke’s groundbreaking, if slightly dull, press conference. The euro looks like it might start testing the $1.50 level for the first time since November 2009 and is up 0.3 per cent at $1.482. Meanwhile, gold, viewed as both a hedge against future inflation and protection against the debasement of paper currencies, has hit a fresh nominal high of $1,534.90. Silver has also bounced back from its mini-slump and is now at $48.75, within sight of multi-decade highs.”
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