Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Euro to Fall Further and Gold Breaks Traditional Relationship With Dollar

Currencies / Euro Jun 22, 2010 - 05:20 AM GMT

By: Miles_Banner

Currencies

Best Financial Markets Analysis ArticleThe devaluation of the euro in recent months, which has continued in spite of huge political attempts to reverse the trend, has recently accelerated.


The Euro value against the USD (US dollar) has nosedived. The 30, 90 and 200 weekly averages have been falling steeply. Something known as a ‘golden cross’ has formed, whereby the 30 and 90 weekly averages have fallen through the 200 weekly average.

A ‘golden cross’ is a bearish sign which could spell further falls ahead for the euro (If you’re uncertain of what these moving averages are don’t worry, we’ll write an article on these soon).

As confidence in the euro continues to erode, gold prices today find themselves at record highs for the euro, pounds sterling (GBP) and US dollars.

The dollar and gold relationship changes

Whilst new records are being reached for gold priced in US dollars the dollar too has seen an improvement over the year.

This week saw the gold futures up more than 15 percent on a year to date basis, and the dollar index up 10 percent, the long term ‘Inverse dollar gold relationship‘ is being discarded. Gold has been rising in tandem with the dollar for the past few months.

The US dollar and gold are still being sought as safe haven assets, and as such they have grown as the economic instability has fed the growth of investors fears.

Notably the stock market has also been climbing in recent weeks. As the stock market continues to post gains the underlying gold prices really reflect investors sentiment. The high gold prices reflect peoples fear about a double dip recession or at least a correction. This will only become greater as the stock market goes higher.

The rise of the US dollar and gold together is based on the need for capital to find safety. What we should not forget is that although the stock markets are rising this does not indicate stability in currencies and economies. Despite the apparent safe haven of the US dollar, there can only be one conclusion. It will have its day of reckoning, it’s just a question of when.

Digger
Gold Price Today

We leave you this week with a fascinating article forwarded to us by one of our readers, James. It’s a Bloomberg story that reveals the insatiable appetite for gold amongst central banks – Central Bank Gold Holdings Expand at Fastest Pace Since 1964

© 2010 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in