The Euro is doomed to failure and breakup, the US dollar is facing an uncertain future and in all this turmoil the gold price continues to rise on the spot market. There are many factors which affect the gold spot price not least the manipulation of paper currencies by governments around the world. At the moment the US dollar against the Euro is about a ratio of $1 - €0.71; however even though the US dollar is weak, the Euro is weaker, propped up artificially as it is by higher interest rates set by the European Central Bank. Drop this interest rate down to the same levels as the current US rates and it would be nearer $1 - €0.92.
Perhaps the other single largest factor which is keeping gold prices in a continuing bear market is fear – and at the moment it appears more and more people are fearful of their future security and wealth than has been for many years.
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