SP: Fed Rate Cut May Benefit Gold and Stall U.S. Dollar
One of the consequences of a Fed rate cut will be a weakening of the dollar, especially if other central banks do not reduce rates proportionately. To get straight to the point, the way to play such a move would be to go short the U.S. Dollar Index and/or go long gold. The first one is overbought and the latter is oversold. Both are due for a correction.
Related Securities: Power Shares DB US Dollar Bullish Index Fund ETF (UUP); Power Shares DB US Dollar Bullish Index Fund ETF (UDN); and Spyder Gold Trust ETF (GLD).
