Equity market badly beaten, Reality crushed to ground, Rupee at lower ever levels against dollar, Economy in the downturn …….in this gloomy doo my scenario what is shining sparkling brightly ………… Yes you are right ……

Question in the air is what is driving GOLD and US DOLLAR t ogether. Gold generally go hand in hand with crude. This time crude is trading at very low levels but GOLD is sparkling above 1000 US $ .

Again GOLD always had inverse relationship with US DOLLAR. But story this time is altogether different.

Dollar is rising against every currency in world although economy is US is in very critical stage.

Reason: US is facing bad time there but surroundings could face worse!!!!!!!

The IMF says European and British banks have 75pc as much exposure to US toxic debt as American banks themselves, yet they have been much slower to take their punishment. Write-downs have been $738bn in the US: just $294bn in Europe.

Political scenario in Japan is further aiding the rise. Finance Minister of Japan has said that he will resign after budget bills are passed in Parliament. Other factors like an unstable global economic scenario, low interest rates, weak equity markets and depreciating rupee are also pushing the prices much higher.

Now lets see this turn out to be true or just a story made up to run a bull run as it has been run in equity and crude . Anyways is what the scene is ………GOLD is trading at very high levels.

Newton’s theory of gravitation hold very well on financial markets as well as. What goes up has to come down. Bottom-line is don’t enter in gold now but try to book profit at higher levels if you hold……..