Gold priced in terms of the Euro, or Euro-gold, is moving strongly higher this morning as investors on the Continent are becoming increasingly worried over developments in Portugal and Ireland. Talk is increasing that an EU bailout is very possibly in the cards for Portugal and that is drawing money into Gold over across the pond.
The weakness in the US Dollar has helped to keep a lid on Euro-gold as the Euro has been very strong over the past couple of weeks. That is changing today with the Euro being sold over fears as noted above. With gold moving higher in US Dollar terms and the Euro sinking, that is helping to move the price of Euro gold higher.
As noted on the price chart below, it is moving back above most of the major moving averages and very close to generating a buy signal. From a technician's standpoint, I would like to see it move through the 1040 level although a push through 1030 would certainly raise the alarm bell among some of the shorts.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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