Gold in some Foreign Currency Terms

By request...

The spike lower in EuroGold below 1200 seems to have been a relatively short-lived phenomenon, for now. You will note that in terms of the Euro, gold has been in a steady downtrend since October of last year with the trend more defined since November.

This is a possibility that it has broken this downtrend but one day does not a new trend make. We need to see CONFIRMATION. For a bare minimum, I would need to see Eurogold trade through the 1240 level and maintain its footing ABOVE that level. I would feel extremely confident that a near term bottom is in if price could climb past 1250.

Sterling gold is displaying a wedging pattern and has not performed as poorly as EuroGold of late. This is due to the extreme weakness in the British Pound which has has trouble lately on the crosses as further weakness displays itself in the British economy. The BOE is engaged in its own bond buying program and there is chatter that it may not be sufficient to lift the economy out of its doldrums over there.

You might notice that Sterling gold does not remain below the 1000 level for any length of time. It is very similar in that sense to Euro Gold and I might add, to US Dollar priced gold in reference to the $1570 - $1560 level.

I would need to see Sterling Gold above 1110 - 1120 to feel that it is going to challenge its all time high near 1180.

Lastly, Yen Gold - what more need be said - it is on a strong tear higher as the Yen has been the whipping boy of the crosses. The new Japanese government is determined to stave off the deflationary funk that has gripped its economy for decades and to that end, is going to create boatloads of yen if necessary. The currency is devaluing against nearly every single currency out there, not to mention gold. I would look for the all time high in this "cross" to be taken out by summer.