gold, page-27349

Skol,

There is a near term scenario that could play out for you. If Le Pen does super well in first round of presidential elections and potentially wins the 2nd round then the euro is likely to tank. The US dollar would get a bid so that may play out short term for you. There is for a while the safe haven move in to USD which may still occur as a kind of reflex action its so mentally ingrained in market participants but regardless of that I think Gold is likely to get a bid anyway. I mentioned a few months ago how the USD and Gold would diverge in their inverse correlation. I think recent events are giving some justification to that argument although the more we see that play out with a rising dollar and rising gold it will be crystal clear that its happening.

Gold is the best arbiter of any currency as its priced against all currencies. Gold continues to move up in US$ terms and has done for a very long time. This shows that it takes more US$ to buy 1 oz of gold. This means that the US$ is getting weaker against Gold Skol. A large move upwards for Gold in a hurry will show a vote of no confidence in the US$.

I think the US$1300 is on the cards before Easter.

JFI