Trading Gold In EURO’s Instead of Dollars Now Making SenseSubmitted by Doug Eberhardt on Fri, 12/11/2009 - 12:58
23 days ago I wrote an article "Trade Gold In EUROS Instead of Dollars? Switching May Make Sense Soon" where I presented the case that the GDP of the Eurozone didn’t support the appreciation the EURO was receiving over the U.S. Dollar, which also was experiencing lousy GDP numbers. It was the fact that the EURO was approaching its all-time high against the U.S. Dollar that made no sense.
Couple this with the fact that Obama was on a whirlwind Asian trip in support of the beleaguered buck, Timmy Geithner was preaching his mantra of a strong dollar again and the Elliott Wave Theorists perfect world scenario was waiting for the “external influences” to cease, the logical conclusion was to predict there might be a reversal in the Dollar forthcoming and thus a fall in the U.S. Dollar price of gold. Being that the EURO was so heavily overvalued compared to the U.S. Dollar, there could still be some profit made by buying Gold in EURO’s rather than U.S. Dollars.
Gold Priced In EURO’s vs. U.S. Dollars the Last 30 Days
Below you will see the charts to show this is in fact what’s occurring. The first chart I posted in the Nov. 18th “trade gold in EURO’s” article mentioned in the opening paragraph. The second chart is from the Dec. 10, close.
Read the rest here: http://fedupbook.com/blog/gold/trading-gold-in-euros-instead...