If you know this Gold-Euro connection, you won’t panic every time price falls
By Gonzalo Lira
For those of us watching the Gold markets—that is, those of us anticipating the collapse of the euro and the eventual collapse of the dollar—the last week has been a scary ride: Gold has fallen over 8.6%, from a high of $1,730 on December 7 to around $1,600 on December 20.
The fundamentals would point to gold being a safe haven play—it should not be falling: If anything, it ought to be rising. But a fall of 8.6%? In a week? The first thing that pops into my head is, Don’t Panic!!
The second thing that pops into my head is, this is to be expected—and is only a temporary pullback.