the Euro vs USD in relation to gold

57loaded

i'd like some disussion about this, please..i'm open to all reasoning and corrections to my logic as well.....

some gold bulls feel that the Euro will trade at almost 2x USD in the future, therefore making the USD so "weak" that gold will rise to $1500+

i see the Euro as much more fragile than USD and do not think this realtionship of USD vs Euro...therfore gold @ $1500+ will be a valid argument for gold's rise now.

i do think gold is still a bull, in spite of the relationship between the USD/Euro....it seemed to be tracking inverse prior to this latest belch on Wall Street, but not so much now.

when i say USD i am referring to USD index

NumbersUsacom

Just an observation based on many years of watching market action:

It is evident that there is a pairing of moves rather inverse or parrallel that can run for periods of time, but there

seems to always come a time(s) that the opposite is true. The question is, timing and deciphering

this divergence in order to profit from it.

An individual commodity or equity, etc finds its own distinct way at times due to a change in underlying fundamentals or just specific

speculative mania.

ProofCollection

The USD index is against a basket of currencies... I think that comparison of gold price to USD index might not be reliable because there may be wild inflation in some of the other countries but not all or to a varying extent.

500Bay

The euro is weakening due to European financial weakness.
The dollar, for all its troubles - still seems to be the place for safety. The euro is still untested in a recession.
Since the dollar is still the world's reserve currency - Gold will move primarily relative to the dollar.

roadrunner

In the end, all the fiat is trending towards worthlessness. At some point in the next few years it really won't matter if you have a Euro or USD. And as the chart shows, the USD is 57% Euro. So in many cases these inverse moves between them are more fantasy than fact.

roadrunner