Market Tips: Dollar Still Safe, Gold Rush May Be Over
Gold fell away from the $1,000 level it hit last Friday as global stocks rose as reports that the US government may raise their stake in Citigroup gave banks a boost and relieved investors.
All three safe havens – gold, Treasurys and the dollar – were lower Monday. Experts tell CNBC the reign of the safe haven plays may be over.
Tough for Gold to Rise Further
Julian Rigby, joint manager at IQS Fund is cautiously long on gold, despite the precious metal's stellar rise in recent days. He tells CNBC that is because it is difficult for gold to rise in a strong dollar environment.
Cautious on Gold
"Gold has seen a precipitous run up here in the past year," Jared Levy from FME said. "We are approaching a gold bubble."
"In my opinion, it's a little overbought here… If we see anything bullish in the markets, gold is going to come in sharply, and I would be really careful here."
Safety in the Greenback
Dollar is a safe bet for the time being, says Sean Callow, senior currency strategist at Westpac Bank.
Dollar Uptrend Troubled
John Noonan, senior FX analyst at Thomson Reuters, says the long-term risk is high for U.S. dollar to fall sharply.
Euro-Dollar Are News Driven
The euro-dollar will trade almost entirely on news this week, says Claudio Piron, head of Asia FX research at JPMorgan. He outlines the two key factors that will affect this cross.