$1.32 Euro Under Construction

@phs-ok, you are the second to mention the GOLDman-backed PPT, so I will respectthe forum and cut it out. It does get (g)OLD(man) after a while, but I think you all get the message that there is CONSTANT subtle interventions and manipulations in these markets.

R.I.P. my dear friend GOLDman, R.I.P.

Over and out!

Pipped Off - Congrats on the profits. I too find Ashraf invaluable. Some advice - chill with the Goldman commentary and lets keep these forums pure. Stick to the charts and the analysis. I don't want to make Ashraf's job any more difficult...and I would hate to see him start restricting access and/or limit this extremely valuable format. Enjoy your profits over the weekend!

@Rim: This is just an "amateur" viewpoint, but IMHO, gold is the ultimate safe-haven**, regardless of what else is happening in the market. As such I think it can "have a mind of its own" to some extent (one of the CMC commentators - not Ashraf this time - said as much on a recent YouTube video).

So my guess is that the markets got the jitters over the whole European thingk, and maybe China as well, and no doubt a few other things, and so we are seeing a bounce in gold. Unless it motors on tomorrow, I don't necessarily think it means a great deal. But that's just a personal opinion from a *non-expert* .


(**This is why I - and a lot of other people I think - are long-term bullish gold. However, we have an intermediate-medium-term situation at the moment where the long-term bull market has been interrupted - sooner or later it will resume. The $64,000 question is only "when?".)

Hi Ashraf ,

How do you evaluate the situation while EU 1.36 but Gold 1095 ? DXY still above 80 . Why Gold so high?

re xaron,callum and montmercy's posts,

there is a significant difference between the eurozone issues and the usd issues.

no matter how bad the debt is in california, new york or wherever, those arent independent nation states and will NEVER be allowed to drown. the Federal government WILL step in to save them with whatever measure possible, even if that is printing money.

in the eurozone, the solutions are less clear. i doubt greece, spain and portugal will be allowed to leave the union and go back to their old currencies. in fact that will never happen. however the structure of the eurozone economies will be seriously tested because all these are independent nation states WITHOUT the ability to print their money to freedom!

i would not be surprised to see civil unrest in greece, spain and portugal in the coming months.

at the end of the day for the large funds, this is all about perception of risk and the USA any day is perceived to be less risky than the eurozone, given the current issues today.