Gold vs. Dollar vs. Euro - Part II
No sooner does the Euro take what some would have you believe, its last breath, than does a deal come to bail out Greece.Along with a contribution from the International Monetary Fund, the European Union seems to have figured out how to restore strength to the Euro that had been getting its tail kicked by the dollar for the last few months.
Yesterday, the Euro dipped to a low below $1.33 and today, so far, we've seen levels above $1.34.Coincidentally, gold today is showing signs of rejuvination, as if anyone believed the dollar's recent strength could be sustained amidst a frenzy of dollar printing.
It just goes to show, the more things change the more they stay the same.In the big picture it is hard to find long term indicators that point to dollar strength, shrinking deficits and lower gold prices.It seems every time gold prices dip on news of - WHATEVER! - someone big comes along and takes advantage of lower gold prices to buy more gold.China and India are among the prime suspects.
So, if I had to make any gold recommendations, mine would be to stay the course, keep your eye on the big picture and a long term outlook.Gold hasn't quit its role as an inflation hedge and as you have heard many times, its never been worth zero.
I truly enjoy your Lear Blogs.Short and sweet and too the point.Keep up the good work. Anne