Well I would make a prediction on the direction of the US dollar however what is the point. The US dollar is just a worhtless piece of linen and its value is measured against other equally worthless pieces of linen. The only value these currencies have is the faith people put in them in order to be able to carry out transactions.

At the moment every country in the world is competatively devalueing their currency in order to maintain the status quo in order to support their export industries or because there governements are in equally as poor financial shape as the US government.

Fundamentally the US dollar being the ugliest of the currencies should nose dive but since many of the worlds central banks work in cooperation this has not been allowed to happen. Thus through currency swaps and other open market interventions the central banks have supported the US dollar and kept it in the 72 - 80 range on the B.S. dollar index. This means they have accumilated an ever increasing mountain of dollars and or US treasury paper in their vaults. Much of this worthless paper will go up in smoke but since it did not really cost them anything and it allowed them to keep the paper game going that much longer by maintaining the perception that the US dollar has stabilized it was woth it to them.

This game will only ensure global inflation which is even more gold positive. The fact that the media is trying to explain golds rise as just a US dollar index value loss tells me that the US dollar will most likely continue to bounce around in the established trading range.

This central bank slight of hand does not fool any of the real finacial elite and they are busy buying up all the gold they can in order to convert their paper fortunes into a real store of value.

The only measurement of a paper currencies worth is its stability and if it rises or falls against that of bullion which is the real money.

All in muy honest opinion as always.

F.F.