From Seekingalpha.com: When central banks in a country or region lower their target interest rates, the respective currencies tend to fall in the near-term. And with the globally coordinated (and non-coordinated) rate cuts happening worldwide, conventional wisdom suggests that all currencies would give way to precious metals.
Indeed, we’ve seen a fair amount of precious metal buying in the ETF world. Although gold via streetTracks Gold Shares (GLD) is still 20% off its high, it is essentially flat on the year. Similarly, the Powershares DB Precious Metals Fund (DBP) is down a mere 10% YTD….. Full Article: Source