Baltimore, MD--The U.S. dollar has further declined this week, trading at record lows in some cases. The good news is that with the right plays, you can expect huge profits off of the dollar's weakness. And the important things to recognize are surging trends that weakness brings.

A weakening dollar is a clear indication for us that commodity prices--specifically oil and gold--will continue their steady rise.

But I'll get to that in a minute. First I want to show just how bad our dollar has been acting.

A group of currencies have gained considerably against the dollar. The euro reached near-record highs, trading at $1.3593 earlier this week. We believe this is due to investors moving funds into Europe's currency after interest rates at the European Central Bank stayed at 3.75 percent.

Also smashing the dollar was the British pound, reaching a twenty-five year high at $2.0061. Another hike in interest rates is expected after the UK released news that average earnings rose by 4.6%, along with optimistic inflation news announced earlier this week. This means we can expect the pound to continue to make gains against the dollar.

And the hits against the dollar this week keep on coming . . .

The Japanese yen and Chinese yuan have started making headway after recent lows against the dollar. Rumors of a potential interest-rate hike bolstered China's currency.

The Canadian dollar made some advances against its U.S. counterpart. The latest rise in oil prices has caused a surge of interest in Canadian resources. This marks a 4% gain for the Canadian dollar.

Australia's dollar also reached new highs when word spread of an interest-rate hike in the next few weeks. This makes an 8% increase against the dollar in just three weeks!

And although it has slowed in the last few days, even the Mexican peso has marked record gains against the dollar!

So is it time to head for the hills? To back off our hard-earned cash and hide for a while?

Actually, it's time to make ourselves a lot of money . . .

Failing Dollars and Cold Cash

I mentioned before that you can exploit the weakening dollar by recognizing different trends. And with the waving red flag signifying the dollar's decline, the place to throw our money now is commodities--specifically oil and gold.

Usually, a weakness in the dollar is an excellent indication that oil and gold prices are about to rise.

Think about it.

One of the significant things investors want to protect their money from is inflation. When the dollar drops, those investors will hedge with purchases of gold bullion. And gold has been threatening the $700-an-ounce mark. With the dollar trading at all-time lows against certain currencies, I fully expect gold not only to pass that mark, but to shatter it.

Oil and gold, although not directly connected, usually make parallel gains. Simply put, when the dollar falls, gold rises and oil typically follows suit. Also, more inflation pressure is seen as oil prices rise, further weakening the greenback.

Remember that oil--the king of all commodities--is extremely volatile.

Price surges can be influenced any number of ways--from escalating geopolitical tensions (as we saw with the Iran-Britain crisis), devastating weather events (Hurricane Katrina) or the imminent threat from peak oil (the top and subsequent irreversible decline of global oil production).

Take a look at the next two charts here, and you can see the similar trend in oil and gold for yourself.

As you can plainly see, the two show strikingly similar patterns.

So what do you do about it?

Well, that's the easy part.

Right now, readers of the Pure Energy Report are taking full advantage of trends like these. And trust me when I tell you, these subtle relationships between oil, gold and the dollar are only the tip of the iceberg. Click on the link to find out more.

Until next time,

Keith Kohl