Lord William Rees-Mogg, driving force behind the biweekly Fleet Street Invest newlsetter, analyzes the current state of the dollar, the euro and the future of gold – and why it will always be an attractive, tangible asset.

Lord William Rees-Mogg (Fleet Street Invest UK): In the last six months there has been a rebound of 50% in the great majority of world stock markets.

There has also been a comparable rebound in the price of oil, with West Texas oil rising very close to $80 a barrel. In the oil market there has been heavy two-way trading in options. There could be a sharp spike in the oil price if speculators have to cover their positions.

At the same time the US dollar has remained weak, and now stands at $1.4886 to the euro and $1.66628 to the pound. This is close to a 14-month low on a trade-weighted basis. The

Oil has taken Wall Street on a roller coaster ride in the past week. The ride started with oil rising towards $72 ahead of inventory data and then falling below $71 after inventory data.

Oil fell toward $70 a barrel on Wednesday morning amidst U.S. government inventory data showing a build in crude stocks and weak economic data that raised concerns and doubts about oil demand recovery in the world’s largest energy consumer.

As example of these doubts was shown in U.S. light, sweet crude which fell 81 cents to $70.61 a barrel early in the day giving away some of the gains that helped oil rise 13 percent since last week.

U.S. crude inventories had a sharp rise last week which surprised many experts on Wall Street. According to weekly data from the U.S. Energy Information Administration (EIA), which was released on Wednesday, refinery runs eased while distillate stocks

Gold was higher in the far East on Monday, peaking there at $988, then fell off into the late morning, rallied one last time to just past the noon hour, then fell into the red and stayed there, finishing at $974.60/oz., down $2.00. Overnight, gold has edged higher.

Platinum pushed higher in the far East and remained there, trading within a $15 range all day and, though ending at the low end, still added $21, to $1209. Overnight, platinum is slightly higher.

Silver peaked at $15.95 in London, declined sharply into the late morning, then followed gold with a brief rally and another pullback, to close at $15.59, down 20 cents. Overnight, silver is trending higher. (Click here for charts)

The precious metals were probably looking to start June with a bang, as a follow-up to May’s strong finish but, with the exception of platinum, it didn’t happen. Aficionados had

Gold had a boring, if mildly positive, day on Friday, as many traders left their desks to get a jump on the Memorial Day weekend, locking the metal up in a tight range between $950 and $960, leading to a finish at $956.50/oz., up $2.60. For the week, gold added 2.8%.

Platinum fell off in the far East, rebounded to the New York open, then traded choppily through the rest of the day, to little ultimate effect as it ended at $1153, up $4. For the week, platinum was up 4.7%.

Silver was also off in Hong Kong, but rose sharply in Europe, peaking at $14.81, then traded inside a 20-cent range for the rest of the day, closing in the middle at $14.69, up 14 cents. For the week, silver gained a robust 5.3%. (Click here for charts)

The precious metals did well, holding onto their gains for the

Gold rose from at the mid-point of the Hong Kong session through the first hour in New York, declined sharply to the late morning, but then took off again and advanced steadily higher through the Comex and Globed, finishing at $922.90/oz., up $9.60. Overnight, gold is little changed. Platinum was up and down within a range from $1115 to $1130, and settled near its high point, ending at $1131, up $16. Overnight, platinum has been flat.

Silver followed pretty closely, peaking at $14.35, but fell off and then traded sideways through the day, closing at $14.22, up 28 cents. Overnight, silver is slightly lower. (Click here for charts)

Gold led the precious metals solidly higher yesterday, as the usual suspects lined up in its favor, with oil rising and the dollar declining, and perception that inflation may kick in also supportive.

The rally was general. The Reuters/Jefferies CRB Index

Gold pushed slightly higher in Hong Kong on Monday, but there was little further action until early in the second hour of New York trading, when the metal suddenly went vertical, busting through the $900 barrier, adding $15 in less than a half-hour and topping out at $907, but that was it for the day, as it eased through the rest of the Comex and the Globex, to finish at $903.20/oz., up $17.40. Overnight, gold is slightly lower.

Platinum got the same morning ignition, but it rode the updraught all the way through the day, barely coming off its intraday highs late in the Globex to end at $1118, up $29. Overnight, platinum is trending higher.

Silver blasted off at the same time, as well, and it continued to push higher through the Comex, peaking at $13.14 before falling off modestly on the Globex and closing at $13.03/oz., up 53

Gold had a lackluster but still positive day, rarely straying out of the $895-900 range all the way from Hong Kong through the Globex, and finishing at $898.30/oz., up $5.00. Overnight, gold has fallen off.

Platinum was also tightly rangebound, between $1080 and $1100, but managed to end at the high end, adding $4, to $1095. Overnight, platinum is trending higher.

Silver was dead flat until the mid-point of the London session, then pushed slowly and steadily higher through the Comex and first hour of the Globex, before easing slightly into a close at $12.80/oz., up 31 cents. Overnight, silver is sharply lower. (Click here for charts)

The precious metals all staged a comeback yesterday, with silver performing especially well and the usual suspects providing a bit of lift, with oil rising and the dollar falling against the common currency.

Also factoring in was the GDP number released yesterday.

“The abysmal GDP

Gold was strong in the overseas markets, but it started down with the New York open, declined sharply in the half-hour to the mid-morning point, rallied back to the close of the COMEX and eased slightly in the Globex to finish at $832.20, down $17.70 from Friday. Overnight, gold is trending higher.