As I write this, at 7pm Hong Kong time, the dollar index (DXY), the US dollar's value against a basket of major currencies, has broken well below a 6-year line of support at 94.3539, and stands at 93.7860 – down 0.7% for the day – and is threatening to drop further. Meanwhile, gold has hit a new historical high of US$1,968.70 per ounce, up 2.3%, and the euro is trading at 1.1725, up 0.6%. So, do the obvious and buy gold to protect yourself against further US dollar decline? First question to deal with is whether the dollar decline will continue or even accelerate its sharp decline since late May. Readers of this ... (full story)