Barron’s Catches Dollar Up - Gold Down

The Dollar Index increased 1.5% signaling that the greenback could be the main beneficiary of revised expectations from Fed Policy.

The Dollar gained against the Yen as the Bank of Japan announced it would inject 10 trillion Yen ($115 billion) to cap the Yen’s rise. The dollar ended at 90 Yen, a big jump from the 14-year low of 85 Yen reached last week. The strong dollar also hit gold and reversed its rally above $1200 an ounce.

Barron’s notes that, for the first time, SPDR Gold (ETF) (NYSE: SPY) shares are becoming more expensive compared to calls. It added that, as more signals of economic recover emerge, the incessant demand for gold may waver and its price decline.