There is no trading day more than today that expresses the message the action in gold is sending. In the commodity bull market in the 1970’s, gold was seen as the ultimate inflation hedge. The gold bull market that started in 2000 was of a different kind, that of its perception of another currency of which its been a form of exchange and store of value for 5000 years. With the euro trading just shy of its lowest level since May ’09, gold is breaking out to its highest level since Jan as it is quickly losing its negative correlation to US$ strength. In a fiat currency world, gold is the last man standing and its currently proving its proverbial metal in this environment as investors particularly lose interest in the euro, pound and US$.
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