The U.S. dollar slid to a 1-year low against the euro on Tuesday near $1.48 as deteriorating sentiment on the U.S. currency encouraged selling ahead of a Federal Reserve meeting and Group of 20 summit this week.

Gold fell to its lowest in almost a week on Monday, weighed by a rallying dollar that dented the metal’s appeal to non-U.S. investors and record speculative positioning in the New York gold futures market.

Gold eased on Wednesday, giving up earlier gains, as the dollar recovered losses against the euro after U.S. durable goods data failed to impress, tempering appetite for the metal as an alternative asset.

Gold pared gains on Friday as the euro retreated from highs against the dollar in the wake of second-quarter GDP data from the United States.

“It’s not technically a new decade yet,” writes small-cap expert Dan Denning at WhiskeyandGunpowder.com. “But if the trade of the last decade was to sell stocks and buy gold, then maybe the best trade for the next ten years is to sell bonds and buy energy. Gas, coal, oil, conventional, unconventional, renewable, alternative. You have a whole portfolio of choices.”

While the dumb money is chasing the rally in stocks; the smart money is keeping a close eye on the economy. Bill Bonner has been hammering home this point in the Daily Reckoning. We’ve been doing the same here at Notes. (Consider it a friendly warning.)

Economy got you down? Never fear, Ben Bernanke’s here…Why bear market rally might still have room to run… 1 in 5 homeowners “underwater”… 2 data points suggest the worst is yet to come…As stocks climb, dollar falls… one currency that will continue to outperform the greenback…Chris Mayer on China’s fuel of the future: “It may surprise you”…

Bernanke Sees Late-09 Turnaround; Canadian Dollar Hits Six-Month High; Kraft Beats 1Q Estimates; South Africa Unemployment Hits 23.5%; Service Sector Gains Ground; AIG’s First Quarter Loss Expected to Shrink; Some Traders Oppose Up-Tick Rule; Chile’s Peso Rallies to 7-Month High Against Dollar

February Factory Orders Turn Positive; Fixed Mortgages at Record Low; GM Seeks Gov’t Money For Hybrids; Chile: Copper Prices Heading North; IBM Lowers Bid for Sun; Oil Surges 9% on Dollar Weakness

Gold ticked higher in volatile trade on Thursday, underpinned by improving investment appetite and gains in other commodities such as oil and metals and despite the dollar rising against the euro.