I think about gold in US dollars because that is were all the trading action is. My principal interest in the Euro is the AUD-EUR (because I am dealing that cross every three or four months).
So lets split your question into two pieces:
- What do I think of gold in US dollars? I think it can trade higher, but I would be surprised to see it over $1400 this year.
- What do I think of the Euro? I think that it is well priced now that all the information is "in the street". It wouldn't surprise me to see it drift back up over 1.20 against the USD on profit taking.
Gold-EUR should pick up on one and lose on the other.
