Gold Catching Down with Euro

As much as we can say about the youthfulness and exuberance of the Euro same can be said about Dollar index, it too hasn't been there long. Seeing how dollar index has rallied from its low in 2009 this month is first ever 7month in a row rally for DUx. A monthly close toward 89 or 90 would assure another reason to hit 92 level and then forming an upward channel. That will keep allot of currencies at bay in the historical lower ranges. I guess BOE and ECB were not joking when they said slow growth will be expected through 2010.

One reason to buy euro now is because no one is..... If the recession persists in US which i guess it will, there's no sanity in saying that other basket currencies will rally vs the dollar. Respite of risk aversion does not seem to be going away and if you every time the US M3 money supply starts to fall the global economies start to crumble at the same rate as US. Some lag but they get there eventually, just like UK and Japan right now.

Pound historically have always been and acted worse under conservatives. But at the same time you can believe me when I say this, Uk is no stranger to IMF and if worst comes to worst, i kid you not! Uk will go there. Countries like US Japan and UK and even benchmarked Eurozone can come out of it as their Central Banks in a time not so distant in the future will be the only holder of debt bonds and controlling most commercial banks from around the world. By that time say 5 years from now commodity inflation will be sky high and it would be the best time to sell metal asset preferably Gold. Also by that time market will get more competitive like in the 80's and stock will be back.

This main politics, for who controls the world and shares its global rights and power. What we face now is to test who control the peasants of the world. Your either with them or dead already.

Plus at the same time observe what is not being discussed in the main stream and on the policy level. Yes through money at them, collect and sell debt seems like a brilliant idea to print more money from restructuring debt and then build further financial models based on some old rubbish economic theories from over 100's years ago. One simpler solution if any country wants to bring its people out of these hard economic times is to cut consumption and imports rely more on domestic manufacturing and growth, just what Brazil, India, and even russia did. Look where it got them. Atleast no one goes hungry and every one is pocketing one thing or the other. Service sector can always grow based on some other economies consumption or demand.

We dont need great leader for this kind of vision only willing nations and people of nation. But no we'er too far driven with the illusions of having more and not caring how we get that.

Would love to hear some views on how to fix the problem rather than people still trying to proves whose right and whose wrong.

Ashraf where do you see copper headed

Plz discuss copper technicals

@Station dealer, it's 1242 now! 1233???

@rrose, Station dealer
I hope you didn't short Gold. Yan Ban Fei's speculation may be correct - just wrong timing.

On the other hand, with all the global events happening, i suggest you relook at the situation before shorting Gold. Good luck